World · Malaysia Bureau
2027 Budget needs revenue and spending reforms, think tank says
Malaysia's Institute for Democracy and Economic Affairs argues that deficit reduction alone is insufficient, calling instead for broader revenue reforms, enhanced transparency, and stronger public services.
LSN Malaysia ·
A leading Malaysian think tank has warned that the 2027 budget must go beyond merely trimming the fiscal deficit, urging the government to pursue more comprehensive economic reforms.
The Institute for Democracy and Economic Affairs (IDEAS) said deficit reduction measures are necessary but insufficient on their own. The group emphasized that sustainable fiscal health requires a multi-pronged approach that addresses fundamental weaknesses in the nation's revenue collection and spending frameworks.
Among its recommendations, IDEAS called for the government to broaden the tax base to increase revenues more equitably across the economy. The think tank also stressed the importance of improving fiscal transparency, which it said would strengthen public confidence in government finances and enhance accountability.
Additionally, IDEAS advocated for stronger investment in critical public services. The group contended that while controlling expenditures is important, cuts cannot come at the expense of essential infrastructure, healthcare, and education that underpin long-term economic competitiveness.
The recommendations come as policymakers prepare budget proposals for the coming financial year, setting the stage for ongoing debate over Malaysia's fiscal priorities and economic direction.