Datuk Seri Dr Wee Ka Siong has suggested that the government should continue using the current income groups concept instead of the net disposable income method to measure the socioeconomic status of people under the Central Database Hub (Padu). According to the MCA president, the disposable income method could result in unfair distribution of subsidies among the public. He expressed support for Padu but emphasized the need for an accurate and fair mechanism for distributing assistance to Malaysians.
Dr Wee explained that disposable income refers to the total personal income minus the total cost of living, with the remaining balance considered disposable income. However, he pointed out that this concept has a flaw as the cost of living varies between different localities, urban and rural areas, and some people are more adept at saving than others, leading to discrepancies in the distribution of subsidies. He also questioned whether subsidies should be given to individuals who spend carelessly.
As such, Dr Wee proposed that it would be better to stick to the current T20, M40, and B40 income groups concept. While he acknowledged the government’s intention to increase people’s spending to boost the economy, he urged a reevaluation of the adoption of the disposable income method and suggested improvements to the existing income group concept.
Moreover, he raised concerns about the safety of personal data shared with Padu, particularly in light of past security breaches involving government websites. He emphasized the importance of providing a solid guarantee to the public that their information will be secure, as instances of identity theft and scams have raised skepticism among the public.
Economy Minister Rafizi Ramli had previously announced the government’s intention to adopt household net disposable income metrics to enhance the delivery of socio-economic policies. Padu was launched by Prime Minister Datuk Seri Anwar Ibrahim, but concerns about identity theft emerged shortly after its launch when users were able to register accounts for others using their identity card numbers and postcodes.
