Comprehensive Database Key To Targeted Fuel Subsidy - Salahuddin Ayub

According to Domestic Trade and Cost of Living Minister Datuk Seri Salahuddin Ayub, all relevant database would be merged to identify people eligible for targeted petrol subsidies. He stated that the complete database would include information from the Road Transport Department (JPJ), the Inland Revenue Board (IRB), Bank Negara, Khazanah Nasional Bhd, the Department of Statistics Malaysia, and academic studies.

He stated that having a comprehensive data centre was critical to the effectiveness of the targeted subsidy mechanism.

"I have already explicitly indicated that JPJ data is among the data needed, since we also have data from IRB, Khazanah, Department of Statistics, Bank Negara and university studies. "We need to collect all of the data. "Before we make a final judgement, the ministry or the National Action Council on Cost of Living (NACCOL) should look at all the facts," he added.

According to recent reports, the JPJ database can be used for the RON95 petrol subsidy plan, as the government can identify those who are eligible based on vehicle engine capacity. However, experts believe that the approach is "overly straightforward" and may deprive others of the subsidies. They argue that the government should also consider additional factors, such as household income and household size, which may be obtained from the Bantuan Sara Hidup (BSH) and Inland Revenue Board (IRB) databases.

According to road safety expert Associate Professor Dr Law Teik Hua, the government should examine a vehicle's age and fuel consumption over time before implementing targeted fuel subsidies.

This was due to the fact that automobiles with reduced engine capacities would nonetheless consume more gasoline over time, necessitating subsidy help for their owners.

Source: TheStar & theSun