Long-Term Structural Reforms Needed To Address Cost Of Living - Economist
KUALA LUMPUR, July 17 (Bernama) -- The government should adopt more holistic and forward-looking reforms to manage the rising cost of living, beyond short-term fiscal support, said AmBank Group chief economist Firdaos Rosli.
He noted that cash transfers remain an effective short-term measure which could immediately bring down the cost of living.
“They work and they are easy to implement. But these are short-term fixes. To build long-term resilience, we need sustainable economic strategies,” he told reporters after participating as a panelist at the National Economic Forum 2025 today.
Firdaos said three key structural priorities for the government to consider as it seeks to ease the cost of living while driving growth, are deregulation, dynamic investment incentives and decentralisation.
He said deregulating selected industries could boost national productivity and reduce bureaucratic barriers for businesses and this includes simplifying land and equity-related processes, as well as streamlining business procedures to make Malaysia a more competitive investment destination.
While Malaysia already offers various investment incentives, Firdaos said the government must continuously assess the situation to remain competitive.
“If our neighbouring countries offer the same incentives, what makes us stand out. Our incentives must be dynamic and aligned with global economic trends,” he said.
Firdaos also stated the need for decentralisation of certain administrative functions to speed up industrial development.
Citing the Kulim Industrial Park as an example, he said faster processing of permits and infrastructure support at the local level can help attract more investments.
“Sometimes approvals can be quick in certain areas, like Kulim, which benefits from spillover effects from Penang. But we need more ‘Kulims’, areas that benefit from proximity to ports or industrial hubs, such as Klang or Tanjung Malim,” he added.
-- BERNAMA