2027 Budget tour must turn public feedback into policy, economists warn [WATCH]

Malaysia's government is set to embark on a nationwide tour ahead of the 2027 Budget, aiming to involve the public, businesses, and NGOs in the policy-making process. According to Universiti Kuala Lumpur Business School economist Dr Aimi Zulhazmi Abdul Rashid, this approach could move budget-making away from its traditional top-down method.

By directly engaging with various groups, policymakers can gain a clearer understanding of the unique challenges faced by different sectors, such as small and medium enterprises in Shah Alam, fishermen in Terengganu, and startups in Penang. The Finance Ministry is conducting the tour to gather views from stakeholders, which will be considered for inclusion in the budget, with other suggestions referred to relevant ministries and agencies.

Industry input could help identify potential problems with proposed measures before implementation. For instance, if a new carbon tax is proposed, manufacturers can recommend a phase-in period for adaptation. However, both economists caution against allowing the consultation to become a mere roadshow without meaningful follow-through.

Instead, they stress the importance of translating feedback into practical and targeted measures to strengthen public confidence and better reflect the needs of different sectors and communities. Economists also highlight the importance of fiscal space, which allows for new measures, but calls for careful prioritization rather than large new spending commitments.

Savings from targeted subsidies could be directed towards higher-impact areas like technical and vocational education and training, automation grants, and investments in productivity, job creation, and long-term economic resilience.