Mohamad Idham Md Razak of Universiti Teknologi Mara (UiTM) advocated investing in the green economy, while Carmelo Ferlito, CEO of the Center for Market Education, called for greater focus on efficient transportation infrastructure, such as rail systems.
They also believe these strategic investments will spur economic activity, generate employment, and drive development in underserved areas.
Idham said the green economy, particularly renewable energy, could benefit households by offering solar energy incentives as an alternative for reducing electricity bills.
According to the senior lecturer at UiTM’s department of economics and finance, such investments can also boost investor confidence by providing tax incentives or developing infrastructure.
“The estimated RM5 billion to RM7 billion savings from the targeted RON95 fuel subsidy can be redirected towards funding technical education subsidies, free healthcare, or tax incentives for green companies,” he told FMT.
“For long-term sustainability, however, it would be more beneficial to invest subsidy savings into research and development or the green economy, as this would lead to job creation and economic growth.”
Idham said this long-term approach would complement the government’s immediate initiatives, such as expanding cash aid programmes like Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (Sara) to ease the impact of subsidy rationalisation.
He said Putrajaya must ensure that 85% of the population remains unaffected by subsidy adjustments by accurately identifying those in genuine need to prevent fraud and high administrative costs.
“MyKad integration or a unified database system can help address this issue by linking income and expenditure data,” he said.
“Public acceptance can also be improved through awareness campaigns, explaining how targeted subsidies can lead to better-quality healthcare services and other long-term benefits.”
Ferlito proposed investing in rail infrastructure, which could improve connectivity between urban and rural areas and spur development in underdeveloped regions.
He suggested that rail projects could be privately funded through the entrepreneurial rail model (ERM), as proposed by Peter Newman from Curtin University, instead of relying on government financing.
Under this model, the government would be responsible for land acquisition and establishing the regulatory framework.
“According to Newman, ERM is a planning and infrastructure delivery approach based on commercial principles, funded through land development and fully financed by the private sector,” Ferlito said.
“This approach requires shifting the focus from revenue collection through taxes to value creation.
“ERM could help reshape Malaysia’s urban and rural transport landscape, creating new economic opportunities and accelerating development in underdeveloped areas.” - FMT
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