Use Data And Analytics To Improve Subsidy Targeting Based On Household Needs -- Experts
BANGI, Oct 23 (Bernama) -- Malaysia should use data and analytics to improve subsidy targeting based on household needs, helping those most in need while maintaining fiscal sustainability.
Inclusive Advancement and Development Institute (MINDA-UKM) director Tan Sri Dr Noor Azlan Ghazali said more precise targeting would let the government address households’ differing needs, rather than adopting a one-size-fits-all approach to assistance.
“For instance, lower-income households with children in university may need laptops, while families with infants require different types of support.
“Advances in technology and data analytics offer opportunities to enhance the targeting of assistance, ensuring that those most in need receive more help. This approach also has the potential to reduce the government’s overall expenditure,” he said.
Noor Azlan was speaking at the Bicara Persada forum titled “Budget 2027: Protecting Household Finances, Strengthening the Nation’s Coffers” at Universiti Kebangsaan Malaysia (UKM) here today.
He said efforts to improve household well-being must be balanced with the need to ensure the country’s finances remain sustainable.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid highlighted the potential of the third sector, which includes cooperatives, non-governmental organisations and social enterprises, to improve community well-being and create employment opportunities.
“These organisations can complement the roles of the government and private sector by prioritising social objectives in their economic activities.
“However, expanding the sector’s contribution requires investment in management capacity, skills and governance to ensure these organisations operate effectively and grow,” he said.
Mohd Afzanizam said cooperatives, for instance, could help members obtain goods at more affordable prices while providing greater opportunities to market their products.
Meanwhile, World Inequality Lab fellow at the Paris School of Economics Dr Muhammed Abdul Khalid highlighted opportunities to improve the effectiveness of government spending by directing more subsidy benefits to lower-income households.
“For example, more precise targeting of petrol subsidies towards the intended recipients could create fiscal space to increase assistance to these groups. It could also strengthen public services, including education and healthcare.
“Investment in these sectors is important to improve household well-being and expand opportunities for future generations,” he said, adding that progressive revenue collection and government spending would ensure development benefits reach those most in need.
-- BERNAMA