Budget 2027 should revive Malaysia’s ‘forgotten cities’, says think tank

Malaysia's Budget 2027 should prioritize revitalising the country's "forgotten cities" instead of constructing new economic hubs, according to a policy think tank. The Research for Social Advancement (Refsa) argues that pouring resources into new mega-projects may leave established secondary towns lacking infrastructure, skilled labor, and local supply chains.

Refsa contends that resources for social development and economic growth should be allocated based on actual needs, extending to industrial policy by utilizing existing regional assets to fuel national growth. The think tank suggests tailoring development strategies to each region's strengths, citing Johor as a prime example. In Johor, Refsa recommends deepening Muar's technological capabilities to transform it into a knowledge-industrial city, while turning Kluang into the economic core of central Johor by leveraging improved railway connectivity to integrate manufacturing, logistics, and cold-chain facilities with surrounding districts and ports.

Refsa also highlights older industrial cities like Ipoh and Taiping-Kamunting in Perak as prime candidates for adopting new economic functions while preserving their historical identity. This framework does not necessitate additional funds or bureaucratic overhead; rather, it emphasizes the coordination and convergence of existing federal, state, and private sector resources.