Following India’s footprints for distributing subsidies, Malaysia also wants to modify its national identity card system to avoid duplicity and fraud. It also wants to introduce Aadhar card for delivery of welfare schemes and government subsidies.
Malaysia’s Minister of Human Resources M Kula Segaran shared that in the month of May this year, PM Modi offered Malaysia’s Premier Mahathir Mohamad collaboration on matters including the Aadhaar initiative, during his visit to Kuala Lumpur.
Kula Segaran proposed the initiative with the Malaysian cabinet and got it approved for it. Last week, Mr Kula along with officers of the country’s central bank, the finance ministry, the economic affairs ministry, and human resources ministry visited India. The team compromising of high officials met ministers and officials and discussed whether certain features of the Aadhaar system can be adopted in Malaysia.
Kula Segaran said “We met UIDAI (Unique Identification Authority of India) CEO Ajay Bhushan Pandey… We have identity cards (known as MyKad), but with the (introduction of an Aadhaar-like) system, the primary aim is to avoid duplicity of payments and fraud, and to target specific groups,”
He even informed that it would be linked with bank accounts for target delivery of welfare schemes and subsidies.
When asked about the predicaments over privacy concerns, Mr Kula said that there would be a possibility of it so they were working to identify the “workable” format to adopt.
He added that there won’t be much of issues as all details had been already available in the present identity cards system but where it lacked was the proper system for the proper delivery of welfare schemes and government subsidies among people.
He cited an example and said “Now, we have fuel subsidy in my country. Everybody gets a fuel subsidy. We want to target certain groups and give it to them, not to others. We have different groups like B40 — those who earn a household income of less than 3,990 Malaysian ringgit,” Kula Segaran said. The other intention is to make the delivery of subsidies cashless, he said.
Malaysia government provides multiple subsidies like fuel, low-income group, single mother etc for which Aadhar would provide proper guidance.
He added that he wants to end up cheques or cash system which would be only possible through the application of Aadhaar system that permits to send money directly into an account.