Technology expert and Wavelet Sdn Bhd chief executive officer Vincent Lee Hong Fay said Padu is a great idea as it will spur businesses to tap into the database to optimise their operations.
Technology expert and Wavelet Sdn Bhd chief executive officer Vincent Lee Hong Fay said Padu is a great idea as it will spur businesses to tap into the database to optimise their operations.

KUALA LUMPUR: The government's Central Database Hub (Padu) initiative, which will be used to implement targeted subsidies, is Malaysia's progressive stance in harnessing the vast potential of data-driven governance.

Padu is poised to bring about a groundbreaking transformation in government services and policy development by providing a comprehensive socio-economic overview of every household in the country.

Moreover, this centralised repository assures a cohesive and adaptable government framework that can customise its actions to cater to the varied needs of diverse communities, enhanced administrative efficiency and precision.

Conversely, the implementation of Padu also sparks concerns on issues such as privacy, the security of data, and the potential for heightened surveillance.

Technology expert and Wavelet Sdn Bhd chief executive officer Vincent Lee Hong Fay said Padu is a great idea as it will spur businesses to tap into the database to optimise their operations.

Breaking it down, he said running the RM10 million databases, with an estimated high volume of calls from many different businesses, might cost around RM50,000 per month for the cloud infrastructure.

Assuming the government have a team of 5 to 10 engineers to take care of the development, the maintenance will ultimately cost another RM100,000 per month.

"Interestingly, the principles behind the Padu initiative mirror Wavelet's growth trajectory, particularly reflected in our Wavelet BigLedger platform. Drawing a parallel, the Padu project signifies a comparable yet expansive approach, serving as a nationwide beacon of innovation and interconnectedness.

"Just as BigLedger facilitates seamless integration and customisation at the enterprise level, the Padu initiative seeks to streamline governmental functionalities on a much larger scale, potentially acting as a catalyst for nationwide digital transformation," Lee told Business Times.

As a dynamic digital repository, Padu aims to improve government operations by using real-time data for informed decision-making.

This could lead to better-targeted subsidies and welfare programmes, ultimately raising the living standards of Malaysian households, Lee noted.

Furthermore, the integration of Padu into the national framework indicates a renewed commitment to nurturing a digitally progressive society where data-driven knowledge becomes the foundation for sustainable progress and advancement.

This serves as an urging message to other sectors within the country to embrace a more analytical and well-informed approach to delivering services, ushering in a period of increased efficiency and inclusiveness.

On May 15, Prime Minister Datuk Seri Anwar Ibrahim agreed to set up Padu to combine the socio-economic information of every household in the country to streamline the implementation of targeted subsidies.

Last week, Minister of Economy Rafizi Ramli said Padu is expected to undergo a trial run in November before being accessible to the public in January 2024 for personal information verification.

The Padu hub will cover 270 databases from ministries, federal government agencies, state governments and statutory bodies through existing data-sharing agreements.

Despite Padu's promising potential benefits such as more effective allocation of subsidies, informed policy-making and enhanced public services, the initiative sparks concerns over privacy, data security and risk of increased surveillance.

Cybersecurity expert and executive chairman of LGMS Bhd Fong Choong Fook said while the rationale for Padu appears to be a vision for governance driven by data aimed at improving resource allocation and policy formulation, it is essential that these objectives do not infringe on individuals' privacy and data security rights.

"The government should adopt a comprehensive strategy that includes public input and transparency efforts. This entails involving the public in discussions about Padu's development and governance, ensuring there are mechanisms for feedback and addressing concerns," Fong said.

It is essential that the government ensures compliance with existing data protection laws in Malaysia, like the Personal Data Protection Act (PDPA), possibly revisiting and amending these to cover the expanded data scope that Padu entails adequately.

The proposed Omnibus Act set to be tabled in June 2024 should ideally contain provisions that further safeguard data privacy and security, facilitating secure data-sharing processes and safeguarding against breaches.

"In addition, the introduction of the upcoming Malaysian Cybersecurity Bill, as announced by Anwar, further underscores the government's commitment to fortifying the nation's data protection framework," Fong said.

With the advent of the Padu database, a hallmark of modernised governance, the public needs a clear vision of the pivotal role that data security and individual privacy play in this transformative journey.

"It is our resolute commitment to foster an environment where the public is engaged transparently and constructively, thereby crafting a system that resonates with the aspirations and collective interest of all Malaysians, ensuring a forward momentum grounded in trust and collaborative innovation," said Fong.