PUTRAJAYA: Minister of Domestic Trade and Cost of Living Datuk Seri Salahuddin Ayub said the government might adopt a digital approach when implementing targeted subsidization.

He told the media the government could adopt a soft landing approach in the proposed targeted subsidization, beginning with a certain items before extending to cover a broader range of products.

Among the methods identified for this purpose are MyKad identification, MySejahtera or a new mobile application.

“The finance ministry and statistics department will decide which application to use.”

Salahuddin also said the government was considering the proposal to allow micro businesses which need to use cooking oil for their businesses such as the hawkers, to purchase partially subsidized commercial cooking oil under targeted subsidization.

He said some micro businesses had taken the risk by purchasing subsidized household cooking oil.

“If we force them to buy the more expensive commercial cooking oil, they will invariably raise their prices. In the end, the additional cost will be transferred to the consumers.”

Salahuddin said under the existing subsidy mechanism, government subsidies would soon breach the RM100 billion mark. As such, the government would have to study the proposal by the National Action Council on Cost of Living (NACCOL) to implement targeted subsidization.

He said this would cover all the most fundamental daily necessities such as petrol, gas, cooking oil chicken meat and eggs.