In an effort to ensure that subsidized cooking oil reaches those in genuine need, a new targeted subsidy program is set to be introduced next year in Malaysia. Deputy Minister of Domestic Trade and Consumer Affairs (KPDN), Fuziah Salleh, recently announced that only individuals with special identification (ID) and verified eligibility will have access to this subsidized essential commodity.

Currently, the Malaysian government distributes a substantial 60 million packages of subsidized cooking oil each month. However, a common complaint has arisen regarding the availability of this essential item in the market, with frequent shortages reported.

The forthcoming targeted subsidy system aims to address these issues by restricting access to subsidized cooking oil to individuals with valid IDs and confirmed eligibility. Fuziah Salleh elaborated on this development in a Facebook statement, emphasizing that the program is tailored to cater to the specific needs of deserving households while preventing misuse.

Responding to inquiries about alternative forms of identification, such as the use of IC (Identity Card) or MySejahtera, Fuziah clarified that the unique requirements of families differ significantly from those of micro-traders. This targeted approach aims to align the distribution process more closely with the actual needs of beneficiaries.

Fuziah also highlighted the potential challenges faced by traders if the purchase of subsidized cooking oil is limited to specific quantities, such as 3 kilograms (kg) or 5 kg. Additionally, she emphasized that the T20 group (Top 20% income group) would not be eligible for subsidized cooking oil packages, necessitating distinct identification criteria for various beneficiary groups.

In July, Fuziah initially revealed the government's plans to implement this method of purchasing cooking oil packages for specific target groups starting next year. Approximately 5.8 million households from the M40 (Middle 40% income group) and B40 (Bottom 40% income group) categories have already been identified as eligible for inclusion in this program.

Furthermore, Fuziah's ministry intends to encompass roughly one million micro-entrepreneurs within the initiative. These micro-entrepreneurs may include sellers of fried chicken, banana fritters, and fish crackers, who will benefit from the targeted subsidy program.

Economic Minister Rafizi Ramli announced on September 11th that the comprehensive implementation of the targeted subsidy program is scheduled for next year, facilitated through the primary database system known as Padu.

Prime Minister Anwar Ibrahim endorsed the establishment of Padu in May, recognizing it as a pivotal tool to consolidate socio-economic data for every household in Malaysia. This endeavor seeks to enhance the effectiveness of targeted subsidy implementations across the country.

Source: Astro Awani