Why fear Padu if you have nothing to hide?

 

Honesty generally seems to be a scarce commodity when Malaysians have to declare their financial status to the authorities, and I’m not talking about the big shots who have been hogging the limelight lately.

There are those who hide and manipulate their financial standing just to qualify for government aid. Such action will cost the government millions, and eventually billions, in leakages. But do Malaysians care? Many just don’t seem to, with some boasting of their ability to get their hands on financial payouts which they don’t deserve.

The government came up with the notion of a central database hub (Padu) with one of its main aims being to tackle leakages; some thought it could put an end to all the false declarations being made.

But the response to Padu, in terms of enrollment, has been pathetic so far. Only about 1.4 million people have registered, indicating substantial scepticism among the public. The figure accounts for approximately 4.7% of Malaysians aged 18 and above, while the official target is about 29 million people.

On the surface, Padu will make it easier for aid to be dished out efficiently and quickly. Most importantly, the aid will only reach the intended target groups. Among the subsidy programmes that are expected to make use of Padu is the RON95 petrol subsidy.

The existing blanket implementation of the RON95 subsidy is expected to be replaced by a targeted subsidy scheme in the second quarter of this year.

This move will definitely be felt by richer Malaysians, but isn’t it time for those in the higher income group to pay fully for what they can afford?

Fears of petrol pump owners

I spoke to some petrol kiosk owners in Johor Bahru who are struggling to enforce the ban on the sale of RON95 fuel to foreigners. Many say they cannot afford to hire security guards just to monitor or nab motorists violating this ban.

Based on this, they anticipate more problems when targeted subsidies are introduced for Malaysian motorists. The operators fear that it can be easily abused, knowing how some Malaysians go around the laws.

Most of them agreed that incorporating the MySejahtera app would not be foolproof as well, as it can be easily used by others to refuel any vehicle.

Even if a MyKad reader is used to ensure only those eligible to purchase subsidised fuel, this can be abused. MyKad holders could easily drive cars of those not eligible to refuel their vehicles.

Not only that, soon there may be syndicates operated by those eligible for subsidies to “sell” the fuel to others after topping up their tanks. Obviously, enforcement of the subsidy rules by the agencies will be really tough physically and geographically.

Honesty is best

If Malaysians are not honest, no such schemes can succeed. Substantial money will be spent on enforcement and prosecution.

Although the government has not said it, there is a possibility that in time to come, all aid and targeted subsidies will only be given out based on data available in Padu.

In Australia and India, retirees receive an old age pension based on a stringent means test. A centralised database like Padu lies at the heart of the system. No one there is complaining, especially in Australia where there appears to be more honesty when people declare their assets in applying for government aid.

Unfortunately, Malaysians tend to squeeze whatever they can from the government, even if their income falls way above the poverty line.

Like with many government projects, Padu faced heavy criticism. Among them were fears of personal data leaks, theft and fears of being scammed. These are valid concerns, one might say, but when do we change this mindset and start trusting the government?

Government trust deficit

This negativity among Malaysians stem from decades of questionable policies that have created a palpable trust deficit. This has worsened over the years despite the multiple changes in government.

One argument against Padu is that all the information required can be sourced from the different government agencies, such as the Inland Revenue Board, national registration department, Employees Provident Fund and the Social Security Organisation.

True, but isn’t it easier to get such information from a single source? In any case, not all Malaysians pay taxes or contribute to the EPF or Socso. Many are self-employed and it is only their declarations, honest or otherwise, which can be used to decide if they qualify for any aid.

All Padu wants is household members’ basic personal information, address and home types, education, current employment, income for the past 12 months, monthly financial commitment, and government aid received for the past 12 months.

Why fear Padu if you have nothing to hide? We have to trust the government as it appears to be genuine in wanting to ensure there are no leakages in the dishing out of aid.

Ultimately, Padu will allow the government to distribute subsidies more effectively and help it make more informed decisions when it comes to policy-making. - FMT

The views expressed are those of the writer and do not necessarily reflect those of MMKtT.