Malaysia defends subsidy-linked database even as millions shun it over hacking fears
- Only 11.6 million people have registered in the database, well short of the 22 million targeted by the authorities
- Prime Minister Anwar Ibrahim is aiming to slash Malaysia’s US$17 billion annual subsidy bill, partly through targeted state aid
A total of 11.6 million Malaysians aged 18 and older had signed up for the new central database (PADU) by the deadline on Sunday night, Economy Minister Rafizi Ramli said in a statement on Monday.
The figure was just over half the 22 million adult Malaysians targeted by the new database - one of the various efforts by Anwar’s administration to reform government spending and trim its budget deficit to 4.3 per cent of gross domestic product, from 5 per cent last year.
“The economy ministry will proceed to present its planning for targeted subsidies to Cabinet in April,” said Rafizi, who declared the PADU rollout a “success”.
Local media outlets on Sunday ran splashes on their websites and social media of long queues at physical kiosks nationwide as Malaysians rushed to sign up with the database before the deadline.
Still, many appeared to have shunned PADU over fears hackers could target a new database of key details - from personal identification numbers to addresses and education level - of virtually all Malaysians.
“We registered our father because we worry he may not get welfare aid,” housewife Christine Chin told This Week in Asia.
“But honestly, I don’t know what [PADU] is for,” the 46-year-old mother of four added.
Critics say the government is asking for too much granular data - including personal bank account numbers and even lottery winnings - without providing any evidence that it has developed data security robust enough to keep hackers and scammers at bay.
Earlier last week, Sarawak’s state government ordered the suspension of PADU registration in the state, pending an in-depth briefing by Rafizi sometime this week.
“If extensive information is disclosed without relevance to financial matters … we see no justification for acquiring such in-depth details,” Sarawak Premier Abang Johari Tun Openg said in local media reports last Thursday.
“Hackers will always try to gain access,” said Benjamin Shepherdson, the Malaysia country manager for data governance consultancy Straits Interactive.
“In today’s world, it is about when an organisation will face a data breach.”
Benjamin stressed that until now, the government has not been subject to the country’s existing data protection regime, which mostly governs how private entities handle the personal data of their clients under the Personal Data Protection Act (PDPA).
“So how can we expect any accountability from the government to adhere to the data privacy principles?” he said.
PADU has been beset by problems since its January launch when a loophole was discovered in the system that allows anyone with knowledge of another person’s identity card number and home postcode to register in their name.
Just two days before the Sunday deadline, former minister Khairy Jamaluddin found that his account was already registered without his knowledge. He was later able to register himself after PADU administrators reset his account.
The pushback, however, was more apparent in pro-federal government states such as Selangor, which only saw around a 44.5 per cent registration rate among adult Malaysians.
The highest rate of registration came from the northern states of Perlis, Kelantan and Terengganu, all of which are run by the Malaysian Islamic Party (PAS) and saw registrations surpassing 60 per cent.
Rafizi, however, said on Monday that existing data in the government’s possession would be “sufficient” to determine whether those who did not register for PADU qualify for targeted subsidies.
“If there is a need, the economy ministry will announce a brief reopening of PADU for registration and updating once the government decides on the form and mechanism for the targeted subsidies,” Rafizi said.
Anwar, who is seeking to cut the country’s hefty subsidy bill which became more onerous throughout the pandemic, last Wednesday said in a post on X said the government “needs to implement fiscal reforms so that it rests on a sustainable and intact foundation”.
Additional reporting from Bloomberg