IDEAS urges institutional reforms in 2027 Budget
KUALA LUMPUR: A public policy think tank has urged the government to make institutional reform a priority in 2027 Budget, including laws on political financing and election offences.
The Institute for Democracy and Economic Affairs (IDEAS) has urged the Malaysian government to prioritize institutional reforms in the 2027 Budget. This includes enacting legislation on political financing and election offenses. IDEAS emphasized that such reforms cannot be postponed, stating that the government must make them a top priority.
The think tank suggested that relevant agencies, such as the Legal Affairs Division of the Prime Minister's Department, the Attorney-General's Chambers, the Malaysian Anti-Corruption Commission, and the Election Commission, should receive adequate funding to advance these reforms. In terms of fiscal resilience, IDEAS called for a more sustainable revenue base for the government, as well as a transparent framework for Petronas dividends and increased productive development expenditure.
This is particularly important in light of the recent Middle East energy shock and the need for Malaysia to be better prepared for future crises.
Additionally, IDEAS recommended a more predictable subsidy framework that is linked to global oil prices, as well as expanded targeted assistance programs such as Sumbangan Tunai Rahmah and Sumbangan Asas Rahmah. Regarding economic growth, IDEAS suggested that data-center expansion should be tied to measurable economic benefits, such as job creation, local procurement, and stronger ties with Malaysian companies.
On climate resilience, IDEAS called for higher federal investment in both mitigation and adaptation efforts, proposing an increase from RM3.91 billion last year to at least RM5.50 billion. This allocation would cover funding for ecological fiscal transfers, upgrades to local council drainage systems, and district-level disaster preparedness measures.
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