KUALA LUMPUR (July 1): The development and implementation of the Central Database Hub (Padu) system over three years from 2023 to 2025 is expected to cost RM85.27 million, said Economy Minister Rafizi Ramli.

The sum includes spending on information and communications technology (ICT) hardware and software, ICT services, review and verification, as well as publicity and strategic communication.

"This allocation is also for the operation of online and physical user registration," Rafizi said in a written parliamentary reply to Datuk Siti Zailah Mohd Yusoff (Perikatan Nasional-Rantau Panjang).

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Rafizi said Padu is a strategic government initiative to enhance national governance, and it comprises several phases aimed at improving policy planning and data-driven program implementation.

Phase one of Padu involves system development and data integration, with 10.5 million individuals having updated their data to date, Rafizi noted.

"Padu is now entering phase two, which involves a data analysis process to determine households, reasonable expenses and net disposable income," Rafizi said, adding that this takes into account factors like dependents, cost of living and asset ownership.

Besides being able to reduce dropouts and inclusion and exclusion errors, Rafizi said Padu also enables the government to shift away from the B40, M40 and T20 classification to a more accurate assistance distribution based on set criteria.

Meanwhile, Rafizi said the Finance Ministry’s Budi Madani programme is different from Padu.

"Padu is a data repository for all individuals and households of citizens and permanent residents in Malaysia, while Budi Madani was introduced as a platform for a targeted subsidies approach, disbursing assistance only to those in need to curb the increase in costs of living," Rafizi said.

Rafizi added that Budi Madani uses existing government databases, and the information is shared with and integrated into Padu.

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