Kuala lumpur: The government should adopt more holistic and forward-looking reforms to manage the rising cost of living, beyond short-term fiscal support, said AmBank Group chief economist Firdaos Rosli. He noted that cash transfers remain an effective short-term measure which could immediately bring down the cost of living.

According to BERNAMA News Agency, Firdaos emphasized that while cash transfers are easy to implement, they serve only as temporary solutions. Speaking at the National Economic Forum 2025, he stressed the need for sustainable economic strategies to build long-term resilience.

Firdaos identified three key structural priorities for the government to consider: deregulation, dynamic investment incentives, and decentralization. He argued that deregulating selected industries could enhance national productivity and reduce bureaucratic barriers for businesses. This includes simplifying land and equity-related processes and streamlining business procedures to make Malaysia a more competitive investment destination.

He also highlighted the importance of maintaining competitive investment incentives. While Malaysia already offers various incentives, Firdaos urged the government to continuously assess the situation to ensure they remain attractive. He questioned what makes Malaysia stand out if neighboring countries offer similar incentives, suggesting that incentives must be dynamic and aligned with global economic trends.

Furthermore, Firdaos advocated for the decentralization of certain administrative functions to expedite industrial development. He cited the Kulim Industrial Park as an example where faster processing of permits and local infrastructure support have successfully attracted investments. He suggested that more areas like Kulim, which benefit from proximity to ports or industrial hubs such as Klang or Tanjung Malim, are needed to drive growth.