The government is expected to implement a special mechanism to offer free tolls exclusively to the B40 and M40 groups. This new approach comes as a shift from the blanket free tolls traditionally offered during festive periods.
The initiative is expected to rely on the PADU database, a national data repository designed to ensure benefits are directed to those who genuinely need them.
Dr T. Saravanan, the Chief Executive Officer of the Federation of Malaysian Consumers’ Associations (FOMCA), highlighted the significance of PADU in implementing this targeted subsidy plan.
“With the announcement of a more targeted approach in providing free tolls, there are several expectations regarding the implementation of this measure. One of them is that the government may introduce a special mechanism that provides free tolls or discounts only to low-income groups such as the B40 and M40,” he said as reported by Berita Harian.
Discounts and Incentives on the Horizon
Dr Saravanan also pointed out that the government might still consider offering toll discounts during festive seasons. Additionally, he hinted at the possibility of digital travel incentives, such as vouchers or rebates, which could be redeemed through recognised government apps over a specific timeframe.
“Another approach expected is through the provision of digital travel incentives, such as toll vouchers or rebates that can be redeemed through government-recognized applications within a certain period.
“This measure is expected to ensure that benefits are provided to those who really need it, thus avoiding waste of national resources and increasing efficiency in the management of the country’s highway system,” he added.
Reducing Leakages and Boosting Efficiency
The shift towards targeted subsidies is being praised as a financially responsible move that will reduce waste and direct resources to more essential sectors like healthcare, education, and economic development.
“This measure is expected to ensure that benefits are provided to those who really need it, thus avoiding waste of national resources and increasing efficiency in the management of the country’s highway system,” Dr Saravanan reiterated.
He further explained that PADU’s data-driven approach will help minimise leakage, ensuring that subsidies reach those in need.
“From a subsidy coordination perspective, this move can be considered a good approach because it can help reduce the government’s financial burden by ensuring that subsidies are given to those who truly deserve it.”
“In addition, this move will also increase efficiency in the use of public resources by channelling funds to more important sectors such as health, education, and economic development that provide long-term benefits to the country. This approach can also reduce subsidy leakage that often occurs when aid is given comprehensively without taking into account the actual needs of the recipients,” he added.
At its heart, this measure aims to make better use of limited resources while ensuring that assistance reaches those who need it most.
Whether it’s through free tolls, discounts, or digital incentives, the focus is on delivering benefits in a way that is both effective and efficient.
Source: Berita Harian
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