Kuala lumpur: The Ministry of Finance (MOF) is currently evaluating a proposal to enhance the MyKad-based digital ecosystem by integrating it with the Sumbangan Asas Rahmah (SARA) system. This initiative aims to bolster identity verification processes in the sale of subsidised cooking oil.

According to BERNAMA News Agency, Finance Minister II Datuk Seri Amir Hamzah Azizan announced that the MOF is collaborating closely with the Ministry of Domestic Trade and Cost of Living (KPDN) to implement this system, particularly through the Cooking Oil Price Stabilisation Scheme (eCOSS). This move seeks to mitigate leakages and ensure that subsidies are distributed efficiently and equitably to the intended beneficiaries.

Amir Hamzah emphasized that this approach utilizes existing infrastructure, avoiding the introduction of new mechanisms that might impose additional burdens on the public, while ensuring that subsidies reach only eligible citizens. This was stated during a question-and-answer session at the Dewan Rakyat, in response to a query from Jimmy Puah Wee Tse (PH-Tebrau) about replicating the successful BUDI MADANI (BUDI 95) subsidy coordination mechanism for other goods like cooking oil and sugar.

He further explained that the use of MyKad as a tool for verifying eligibility for targeted subsidies has proven effective and practical, as demonstrated by the BUDI 95 system. This system processes approximately 3.1 million transactions daily without interruption, showcasing its accessibility and stability. Moreover, the implementation of SARA 2025, with a 99 per cent usage rate via MyKad, further underscores its effectiveness.

Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali had previously mentioned during the Dewan Rakyat session on January 29 that discussions with the MOF were underway regarding the proposal to use identity cards for purchasing subsidised packet cooking oil.