Think tank urges Budget 2027 focus on reviving Malaysia's secondary cities

The Research for Social Advancement has recommended that Malaysia's industrial policy framework be redirected toward rejuvenating existing secondary cities that have been sidelined in favour of larger metropolitan areas and new special economic zones.

The think tank argues that towns like Muar in Johor and Ipoh in Perak possess the necessary infrastructure and human capital to support industrial expansion, yet have been overlooked in recent economic development strategies. By channelling investment and resources into these established centres, the organisation contends that Malaysia could unlock significant economic potential while reducing urban concentration.

The recommendation comes as policymakers prepare the 2027 federal budget, which is expected to outline the government's economic priorities for the coming year. The think tank's proposal suggests a shift away from the capital-intensive approach of developing entirely new growth centres, advocating instead for a more pragmatic strategy that builds upon existing foundations.

Secondary cities across South and Southeast Asia have increasingly attracted attention as alternative engines of growth, offering lower operational costs and less congestion than primary metropolitan centres. The Research for Social Advancement's recommendation reflects this broader regional trend toward more distributed economic development models.