Rafizi: PADU Ready but Overlooked for RON95 Subsidy Rationalisation

Despite the government’s recent decision to not use PADU (Pangkalan Data Utama) for RON95 subsidy rationalisation, former Economy Minister Rafizi Ramli insists the system is in fact ready and already in use within various government ministries.

In a recent episode of the MediaRakyat podcast, Rafizi revealed that PADU had been developed as a centralised national data system to overcome long-standing inefficiencies in how government departments operate.

Currently, Malaysia spends around RM13 billion annually to build and maintain separate IT systems across ministries, resulting in siloed platforms where each department handles everything from backend to frontend development independently. This leads to Malaysians having to register and remember login details for multiple apps and portals.

Rafizi explained that Malaysia already has the data needed for effective policymaking. Agencies such as the National Registration Department (JPN), the Education Ministry, the Inland Revenue Board (LHDN), EPF (KWSP), and the Finance Ministry (MOF) each store different aspects of a Malaysian’s data.

When combined, these datasets can provide a full picture of household income, dependents, and financial standing, critical components for a fair subsidy distribution model.

Launched in May 2023 under the Economy Ministry, PADU was completed in just six months and officially unveiled by Prime Minister Datuk Seri Anwar Ibrahim. Contrary to the RM85 million figure cited publicly, Rafizi clarified the actual development cost was just over RM20 million, with under RM10 million allocated to IT infrastructure including eKYC and API integration.

The bulk of the remaining budget was used to fund on-the-ground MySTEP personnel to assist with manual registration, particularly in rural and underserved communities.

This outreach proved successful, with 21 million Malaysians or about 70% of the population registered by the first quarter of 2024. PADU is now the second largest government data repository after JPN.

The original plan was for PADU to power subsidy rationalisation efforts starting with RON95. The system could identify recipients based on actual needs by evaluating household income, location, and family structure, offering a more targeted and fair distribution of government aid which could also be utilised in areas like school fee assistance and PTPTN repayments.

However, Rafizi revealed that internal disagreements among government ministries led to PADU being sidelined for RON95 subsidy planning. The Finance Ministry is reportedly pursuing a different method despite PADU’s readiness.

Still, PADU hasn’t gone to waste. Rafizi disclosed that the Ministry of Digital is already using PADU’s backend to build a "single window" application that combines various government portals into one. This means users will no longer have to deal with multiple logins and forgotten passwords.

By centralising data, PADU not only promises to cut IT spending across departments but also ensures better coordination in policy implementation and prevents leakages in aid distribution.

Rafizi further stressed that while PADU may not be in the public spotlight, it is quietly forming the backbone of the government’s digital transformation efforts.

He also took aim at certain government departments that focus more on social media campaigns rather than meaningful structural reform. PADU, he said, represents a significant shift in how decisions can be made based on real, unified data, not assumptions or outdated records.

In short, while the public may not see PADU used for fuel subsidies today, it is already playing a critical role in how future government services will be built and delivered.