SHAH ALAM - The Malaysian Corruption Watch (MCW) has recommended eight measures to the government to reduce potential leakage following the government's decision to implement targeted diesel subsidies.
MCW suggested that, in addition to the Central Database Hub (Padu), the government should use vehicle registration data to ensure that only vehicles owned by the targeted groups, namely B40 and M40, receive subsidies.
It stated that this database should be regularly updated and coordinated with relevant agencies.
"The government can also use MyKad or national identification cards to ensure that only eligible owners can purchase subsidised diesel. This can be done by linking subsidised diesel purchases with the digital identification system.
"The use of technology and digitalisation is also crucial. Implement a centralised monitoring system to oversee the sale and use of subsidised diesel.
"Technologies like blockchain can be used to record and verify transactions to prevent manipulation," it said in a Facebook statement on Wednesday.
Prime Minister Datuk Seri Anwar Ibrahim announced on Tuesday night that the Cabinet had agreed to implement targeted diesel subsidies for users in Peninsular Malaysia.
Anwar said the targeted diesel subsidies would not involve the T20 group or the 3.8 million foreign nationals, which would save the government approximately RM4 billion annually, an amount previously enjoyed by those groups.
MCW said the government could also develop a mobile application for users to register and track the use of subsidised diesel.
"This application can also provide direct feedback and reports to authorities. Additionally, the government is advised to collaborate with retailers.
"Provide training to retail sellers on how to identify eligible customers and ensure they comply with subsidy regulations.
"Conduct regular audits and inspections at petrol stations and diesel sales points to ensure there is no misuse. Strict law enforcement against any non-compliance is necessary,” it added.
MCW also recommended that the government provide a special complaint channel for the public to report any leakage or misappropriation of subsidy distribution.
It stated that the government should launch awareness campaigns to inform the target groups about their rights and how to obtain diesel subsidies.
"This can reduce opportunities for manipulation and misappropriation by third parties. Perhaps the Padu registration should also be reopened and available for registration at any time.
"Through this comprehensive approach, the public can be assured that diesel subsidies are properly channelled to those who truly need them, reducing potential leakages that could undermine the effectiveness of the program," said MCW.