SHAH ALAM - The government can strike the right balance by ensuring that immediate relief measures, such as subsidies or cash assistance are coupled with investments in structural reforms.
Universiti Teknologi Mara Malaysian Academy of SME & Entrepreneurship Development Coordinator of the Student Entrepreneurship Centre Dr Mohamad Idham Md Razak said the latest allocations signalled that the government was placing equity and sustainability at the heart of its development strategy, focusing not only on bridging income gaps but also on creating an economy that is resilient, green and future-ready.
He said by channeling resources into education, healthcare, renewable energy and digital infrastructure, Malaysia was showing a clear commitment to inclusive growth that benefitted both present and future generations.
“The allocations are designed to not only ease immediate pressures from the cost of living but also to strengthen the foundations of social safety nets and climate resilience.
“Investments in affordable housing, targeted subsidies, skills upgrading and green initiatives point to a holistic approach that addresses both short-term needs and long-term sustainability,” he told Sinar Daily.
He added that new measures were anticipated in areas such as green financing, digital economy incentives and stronger social protection frameworks.
“We may also see innovative funding models for climate adaptation projects, as well as progressive tax policies that ensure resources are mobilised fairly to drive long-term reform.
“The government can strike the right balance by ensuring that immediate relief measures, such as subsidies or cash assistance, are coupled with investments in structural reforms like education, healthcare innovation and industrial upgrading,” he said.
He emphasised that this dual approach allowed Malaysians to feel supported today while building the capacity for stronger growth and resilience tomorrow.
Meanwhile, economist and policy specialist Dr Geoffrey Williams said there has been progress in helping to raise wages, especially with the minimum wage.
“But this has not helped the middle-income groups so much with median wages still only RM3,000 per month.
“This means half of people in work even less than this and around 40 per cent actually earn below RM2,000 per month,” he said.
He added that the Sumbangan Asas Rahmah (SARA) aid was testing the feasibility of universal payments to help raise incomes but this will have to be monthly to make a difference.
“I don't see any indication of new policies except help for civil servants and projects for special interest groups.
“I would like to see SARA payments made monthly, a non-contributory basic pension and making higher education free,” he said.
He highlighted that there was no balance between short-term relief and long-term structural reform because both were essential.