JANUARY 8 — In India, almost nothing can be done by its citizens, without the Aadhaar-Enabled Payment System with its biometric ID 12-digit identification.
In 2023, the Aadhaar system was hailed by the World Bank and the G20 Summit as a marvel of digital public infrastructure that accelerated financial inclusion of almost every Indian resident.
The Aadhaar card was launched in 2009 to provide a unique identification number for residents to have access to government’s welfare benefits and subsidies which can be directly transferred to the peoples’ personal bank accounts.
“Today such biometric withdrawals have reached 1.3 billion people and 99 per cent of the population,” said Nilekani Nandan, the creator of Aadhaar and the co-founder of Infosys.
India did it, despite having the biggest challenge ever in facilitating the Aadhaar card. More than a third of the population did not have a birth certificate while about 60 per cent did not have bank accounts. This resulted in an upgrade of the technology, using fingerprint and retinal scanning along with a photo, which is seeded on the Aadhaar database for identification.
The good news is Malaysia does not have this setback. In fact Malaysia was the first country in the world to put forth biometric security information and photo identification on a computer chip — the MyKad a mandatory card for all people who are citizens.
Padu, the Central Database Hub of Malaysia was completely developed by civil servants using existing allocations and infrastructure thus not incurring additional expenses, as is often the case whenever a new system is introduced by the government.
Economy Affairs Minister Rafizi Ramli spearheaded the formulating, delivering and launching of Paduwithin seven months.
Padu was first discussed during the National Economic Action Council (NEAC) meeting on May 15, 2023, to collect personal data and details of those who need resources. The data retrieved from Padu would allow the Government to process the information on household income so that specific funds will be allocated and transferred to those in need.
Padu was launched on January 3rd 2024.
“Collecting individual data will help differentiate those B40 from the M40 and T20 categories and allow welfare support to be targeted directly to anyone eligible on income-based need rather than household composition, age, gender, race, religion or any other discriminatory basis.”
“Within a few days of the launch a total of 600,000 Malaysians registered with the national central database hub. Padu will have data for each family and household, the system is also expected to have over 120 variables for households’ income.
The Government is targeting about 29 million to sign up and verify their information on Padu by March 31 this year.
Currently, there are 455 public sector institutions in the country, including 70 ministries, departments and agencies, 13 state governments, 83 federal statutory bodies, 134 state statutory bodies and 155 local authorities.
Each of these 455 systems from various public sector institutions are just linked to one Padu main master file to simplify, streamline and facilitate easier transfer of resources.
Traditional welfare systems like the e-Kasih system, MySalam, eWelfare system allows citizens to apply for financial aid, check the status of their applications, and manage their welfare accounts online.
However, the applications for these funds are tedious and time-consuming, resulting in unsuccessful results. Moreover, many are not even in the know that such funds exist nor that they are eligible to apply.
It is believed that one portal and hub, Padu, will be able to overcome all these shortcomings and help identify the recipients and expedite the transfer of funds.
Optimistically, such funds will increase peoples’ purchasing power, while causing an increase in supply and an eventual lowering of prices of essential goods. Giving cash directly to individuals means they can spend it themselves on the items they need as opposed to bags of handouts that they are forced upon.
Many countries have successfully used digital solutions for distribution of funds to the poor. Estonia is often recognized as a leader in e-Government services and provides its citizens with secure online platforms for various services, including healthcare, education, and welfare.
In the 1990s, the United States Supplemental Nutrition Assistance Program (SNAP) transitioned from paper-based food stamps to Electronic Benefit Transfer (EBT) cards allowing recipients to access benefits electronically.
Back in Malaysia, some uncertainties have to be cleared right from the beginning, on criteria in streamlining the recipients as well as cross checking on credibility of applicants. Clear and specific resources from various inputs from related ministries must be defined and decided upon.
Other concerns are whether social assistance will be given to men as head of households or women as well? What will be the follow up for those without smartphones or laptops? Will the data privacy concerns of recipients be addressed?
There is a fine line between politics and technology. Will this line be crossed?
From now on, Padu will be under the critical radar of society. Whatever our concerns, it is reassuring that Padu’s moral compass is being aligned towards helping the whole nation.
Of late civil service’s input in policies and programs have gone unnoticed and their work has been perpetually under scrutiny. With Padu we should encourage the civil service in this mammoth task of alleviating poverty at all levels.
For the neglected and marginalised recipients, hopefully the promised help is not as far as they imagined. For the rest, life goes on as normal.
*This is the personal opinion of the writer or publication and does not necessarily represent the views of Malay Mail.
