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

Malaysia's think tank, Research for Social Advancement (Refsa), has suggested that the 2027 budget should prioritize reviving the country's "forgotten cities" instead of constructing new economic hubs. The think tank argues that focusing on greenfield projects may leave established secondary towns lacking in infrastructure, skilled labor, and supply chains.

Refsa emphasizes that resources for social development should be allocated based on actual needs, and the same approach should be applied to the economy. This principle should extend to industrial policy by leveraging existing regional assets such as underutilized factories, transport links, and universities to drive the nation's growth.

The think tank points out that forgotten cities often possess productive infrastructure and local supply chains, even if these assets have developed fragmentedly. In this regard, Refsa highlights Johor as an example, with several distinct development models. The district of Muar, for instance, already boasts an established industrial base in furniture, semiconductors, and engineering, and Refsa suggests deepening its technological capabilities to transform it into a knowledge-industrial city.

Moreover, Refsa proposes turning Kluang into the economic hub of central Johor by utilizing renewed railway connectivity to link manufacturing, logistics, and cold-chain facilities with surrounding districts and ports. This approach can be replicated in other older industrial cities such as Ipoh and Taiping-Kamunting in Perak, which have the potential to adopt new economic functions while preserving their historical identity.