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New Straits Times
2 days ago
- Business
- New Straits Times
Govt may make compulsory MyDigital ID registration
KUALA LUMPUR: The government is considering legislation to encourage, or make compulsory, MyDigital ID registration among Malaysians, the Dewan Rakyat heard yesterday. Minister in the Prime Minister's Department (Federal Territories) Datuk Seri Dr Zaliha Mustafa said the voluntary nature of registration had hindered uptake. "Encouraging wider adoption has been challenging due to its voluntary registration nature. This requires discussion, particularly on strategies to boost participation. "The government is exploring the option of introducing legislation that could promote or require Malaysians to register for MyDigital ID," she said in reply to a supplementary question from Datuk Seri Dr Ronald Kiandee (PN-Beluran). Kiandee said the recent autogate system glitch had sparked public concerns about the broader digital initiative, particularly on data privacy and security, the role of implementing agencies, digital accessibility and potential misuse. He also noted MyDigital ID's low adoption rate compared to platforms like Padu and Budi Madani. Dr Zaliha said the autogate incident had understandably raised worries among the public. "However, security measures are being strengthened for MyDigital ID, which ensures that security protocols are strictly maintained, data is not stored, and overall safety is prioritised." She said the government was working closely with various entities, including the private sector, to boost the adoption and utilisation of MyDigital ID across various services. Meanwhile, Dr Zaliha said registrations rose to 2.8 million as of the second quarter of this year, an increase from 1.8 million in the first quarter. "The number is expected to continue rising with the expansion of 'use case', referring to applications or services where MyDigital ID is used." She said this included logging into the MyGOV portal, the MyJPJ app and verification for prepaid SIM card owners. "This is because each new use case creates a demand for digital identity verification, thereby driving up registration among the public." Integrations have expanded to 35 government systems, with another 17 in the implementation stage and 21 in early discussions. "Seven non-government application systems have been integrated, with two more in the process, totalling 82 systems, nearly double March's figure." MyDigital ID will also extend to digital applications in the financial and banking sectors.
New Straits Times
3 days ago
- Business
- New Straits Times
Government mulls law to encourage or make MyDigital ID registration compulsory
KUALA LUMPUR: The government is considering introducing legislation to encourage, or make compulsory, the registration of MyDigital ID among Malaysians, the Dewan Rakyat was told today. Minister in the Prime Minister's Department (Federal Territories) Datuk Seri Dr Zaliha Mustafa said one of the key challenges at present is that registration remains voluntary, thus limiting uptake. "Encouraging wider adoption of MyDigital ID has been challenging due to its voluntary registration nature. This is one of the key issues that requires further discussion, particularly on strategies to boost citizen participation. "The government is currently exploring the option of introducing legislation that could either promote or require Malaysians to register for MyDigital ID," he said in reply to a supplementary question from Datuk Seri Dr Ronald Kiandee (PN-Beluran). Kiandee said the recent autogate system glitch had sparked public concerns about the broader digital initiative, particularly regarding data privacy and security, the role of implementing agencies, digital accessibility and the potential for misuse. He also raised the lower adoption rate for MyDigital ID, compared to other digital platforms like Padu and Budi Madani. Dr Zaliha said the recent incident has understandably raised worries among the public. "However, security measures are already being strengthened for MyDigital ID, which ensures that security protocols are strictly maintained, data is not stored and overall safety is prioritised." She said the government is working closely with various entities, including the private sector, to boost the adoption and utilisation of MyDigital ID across various services. Meanwhile, Dr Zaliha said 2.8 million Malaysians have registered for MyDigital ID as of the second quarter of this year, an increase from the 1.8 million registrations recorded in the first quarter. "The number is expected to continue rising with the expansion of "use case", referring to specific applications or services where MyDigital ID is used as a method of identity verification." She said this includes logging into the MyGOV portal, the MyJPJ app and verification for prepaid SIM card owners. "The more use cases introduced in both government and private sector systems and services, the greater the need for users to register for MyDigital ID. "This is because each new use case creates a demand for digital identity verification, thereby driving up registration among the public." She said the number of MyDigital ID integrations has also increased significantly to include 35 government application systems, with another 17 in the implementation stage and 21 in early discussions. "In addition, seven non-government application systems have successfully been integrated, with two more in the process, bringing the total number of integrations to 82 systems, nearly double the figure recorded in March." She said the use of the inclusivity of MyDigital ID will also extend to digital applications in the financial and banking sectors.
Borneo Post
02-07-2025
- Business
- Borneo Post
SUPP Youth chief calls for clear plan before RON95 subsidy rationalisation
Lau says that although the government is confident in implementing the policy in the second half of the year, the lack of details remains a major concern. SIBU (July 2): Sarawak United People's Party (SUPP) Youth chief Councillor Kevin Lau has urged the federal government to finalise a concrete, comprehensive, and well-prepared plan before implementing the RON95 petrol subsidy rationalisation. He stressed that the details must be clearly communicated prior to its rollout to avoid unnecessary confusion and burden among the public. Responding to comments by Finance Minister II Datuk Seri Amir Hamzah Azizan , Lau said that although the government is confident in implementing the policy in the second half of the year, the lack of details remains a major concern. Apart from the announcement that the MyKad identification system will be used for subsidy distribution, no further information has been released. 'Who exactly will be affected? Will it be the B40, M40, T20 or other related groups? If the government plans to classify the subsidy based on income groups, then clear criterion must be shared with the public,' he said. Lau also questioned whether the government has effectively utilised data collection through previous initiatives such as the Central Database Hub (Padu) system and its proposed integration with Digital Education Policy and Madani Subsidy Assistance (Budi Madani). 'Previously, the government made an aggressive push for data collection via Padu, saying it would be integrated with Budi Madani. Has this data actually been utilised to support subsidy implementation? 'If not properly implemented, the policy could end up placing burden on the people.' Lau, who is SUPP Bawang Assan chairman, also mentioned that the people are still adapting to the newly implemented e-invoicing policy and the expansion of scope for Sales and Services Tax (SST). He stressed that the people should be given some breathing space, and introducing the subsidy rationalisation in the second half of the year could further burden the public. He also questioned whether the government could guarantee that the subsidy rationalisation would benefit all intended target groups. 'Prime Minister Datuk Seri Anwar Ibrahim emphasised that RON95 subsidy rationalisation will not affect low-income groups. 'But what about the middle-income group? How will they be addressed? All groups are facing economic pressures – are they not going to be affected too?' He noted that the vast majority of road users rely on RON95 petrol, making it a necessity for most people. He said although the previous targeted diesel subsidy policy did not include East Malaysia, there were still indirect effects, particularly with increased logistics and transportation costs. 'Additionally, sectors such as taxi drivers, e-hailing drivers, and food delivery riders will also be impacted by changes in the RON95 petrol policy. 'In Sarawak, transportation costs already make the cost of living higher than in Peninsular Malaysia. Coupled with the rising prices of goods, people are facing significantly more economic pressure,' he added. Kevin Lau petrol subsidy rationalisation RON95 SUPP
Daily Express
21-05-2025
- Business
- Daily Express
Blanket subsidies bring more harm than good, say economists
Published on: Wednesday, May 21, 2025 Published on: Wed, May 21, 2025 By: Alysha Edward Text Size: An economist believes that subsidy reform will become harder to accomplish the longer subsidies remain, as the public will begin to see them as entitlements. PETALING JAYA: While subsidies have long been positioned as a tool to help ease the burden of living costs, economists warn that the cost of keeping blanket subsidies afloat may be higher than we think. While fuel subsidies have helped cushion citizens from rising costs, they've also come with unintended consequences such as overconsumption, leakage, and a disproportionate benefit to higher-income groups. 'There is a tipping point, and we are already beyond that point,' says economist Geoffrey Williams bluntly. 'This is why implementing targeted subsidies is essential.' He said the tipping point is marked by growing inequality that usually occurs when the cost of the subsidies outweigh their intended benefits. But the challenge isn't just about how much subsidies cost, but also the damage that it costs when left unchecked. The cost of doing nothing Advertisement Economist Madeline Berma argues that while subsidies are not inherently bad, the current design often benefits those who least need them. 'They're poorly targeted. The wealthier groups, not the vulnerable ones, are absorbing a big chunk of the benefits,' she says. She notes that the government has already made commendable progress in rationalising diesel subsidies and rolling out targeted initiatives such as the Budi Madani programme. According to the finance ministry, the programme has helped save approximately more than RM7 billion, with significant reduction of smuggling and leakages. Universiti Malaya's Goh Lim Thye takes it a step further, saying that blanket subsidies become liabilities and encourage wastage when reforms are delayed. 'Nearly 40% of the RON95 fuel subsidy amounting to RM8 billion benefits the wealthiest 15% of the population and foreign nationals,' he said. By 2023, fuel subsidies had ballooned beyond RM50 billion annually, more than the budget for health and infrastructure combined. That inefficiency has a ripple effect as funds that could be channeled into more productive avenues, such as digital infrastructure, or education. 'Money lost to leakages and inefficiency could have gone into healthcare, digital infrastructure, or climate resilience. It's not just inefficient, it's unfair,' Goh said. Another 'silent cost' was that of entrenchment. The longer subsidies remain universal, the harder it is to carry out reforms as 'the public begins to see them as entitlements' and the political window for reform starts to close. Williams said excessive protection through subsidies would also weaken economic vitality in the long run. 'Companies are less competitive if they are protected with subsidies, and this makes Malaysia as a whole less competitive, agile and innovative,' he says. Madeline said that without timely action, Malaysia would be at risk of missing its own fiscal targets, weakening investor confidence. 'Subsidy reform isn't just about economics. It's about national credibility and long-term resilience,' she said. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
Free Malaysia Today
21-05-2025
- Business
- Free Malaysia Today
Blanket subsidies bring more harm than good, say economists
An economist believes that subsidy reform will become harder to accomplish the longer subsidies remain, as the public will begin to see them as entitlements. PETALING JAYA : While subsidies have long been positioned as a tool to help ease the burden of living costs, economists warn that the cost of keeping blanket subsidies afloat may be higher than we think. While fuel subsidies have helped cushion citizens from rising costs, they've also come with unintended consequences such as overconsumption, leakage, and a disproportionate benefit to higher-income groups. 'There is a tipping point, and we are already beyond that point,' says economist Geoffrey Williams bluntly. 'This is why implementing targeted subsidies is essential.' He said the tipping point is marked by growing inequality that usually occurs when the cost of the subsidies outweigh their intended benefits. But the challenge isn't just about how much subsidies cost, but also the damage that it costs when left unchecked. The cost of doing nothing Economist Madeline Berma argues that while subsidies are not inherently bad, the current design often benefits those who least need them. 'They're poorly targeted. The wealthier groups, not the vulnerable ones, are absorbing a big chunk of the benefits,' she says. She notes that the government has already made commendable progress in rationalising diesel subsidies and rolling out targeted initiatives such as the Budi Madani programme. According to the finance ministry, the programme has helped save approximately more than RM7 billion, with significant reduction of smuggling and leakages. Universiti Malaya's Goh Lim Thye takes it a step further, saying that blanket subsidies become liabilities and encourage wastage when reforms are delayed. 'Nearly 40% of the RON95 fuel subsidy amounting to RM8 billion benefits the wealthiest 15% of the population and foreign nationals,' he said. By 2023, fuel subsidies had ballooned beyond RM50 billion annually, more than the budget for health and infrastructure combined. That inefficiency has a ripple effect as funds that could be channeled into more productive avenues, such as digital infrastructure, or education. 'Money lost to leakages and inefficiency could have gone into healthcare, digital infrastructure, or climate resilience. It's not just inefficient, it's unfair,' Goh said. Another 'silent cost' was that of entrenchment. The longer subsidies remain universal, the harder it is to carry out reforms as 'the public begins to see them as entitlements' and the political window for reform starts to close. Williams said excessive protection through subsidies would also weaken economic vitality in the long run. 'Companies are less competitive if they are protected with subsidies, and this makes Malaysia as a whole less competitive, agile and innovative,' he says. Madeline said that without timely action, Malaysia would be at risk of missing its own fiscal targets, weakening investor confidence. 'Subsidy reform isn't just about economics. It's about national credibility and long-term resilience,' she said.
