KUALA LUMPUR: Attempts by individuals to abuse the Central Database Hub (Padu) system by understating their income to qualify for targeted subsidies will not be easy, said an economist.
As the government pushes for transparent income data to optimise subsidy distribution, economic expert Professor Geoffrey Williams said there should be fewer loopholes that allow people to abuse their eligibility for financial assistance.
Padu's integration with other databases sets it apart, unlike traditional databases, said the economist while appearing on NST's Beyond the Headlines.
One example Geoffrey pointed out was databases such as EPF (Employees Provident Fund) do not cross-check pension contributions against property ownership, creating a potential loophole for income underreporting.
"However, Padu cross-checks income information against sources such as EPF, LHDN (Inland Revenue Board) among others to ensure accuracy.
Geoffrey said the public must remember that Padu's primary purpose is to provide the government with a clearer and more accurate picture of national household income.
"By cross-checking data from various sources, it aims to optimise the distribution of subsidies, ensuring that they reach those who genuinely qualify based on accurate and verifiable income data.
"As the government takes a proactive stance against income underreporting, Padu emerges as a vital tool for transparency and efficiency in subsidy distribution," he added.
Those attempting to manipulate their income data within the Padu system, he said, may lead to penalties that could vary from simple disqualification and a requirement to reapply truthfully to more severe measures for systematic fraud, including criminal charges.
"But in most cases, the penalties would likely focus on correcting inaccuracies rather than punitive measures."
Follow the full discussion in the latest episode of Beyond the Headlines…