KUALA LUMPUR — Strengthening fiscal protection must be prioritised to safeguard economic stability and public welfare, particularly as global uncertainty persists, an economist said.
Universiti Putra Malaysia senior lecturer, Department of Accounting, School of Business and Economics, Dr Siti Zaidah Turmin, said reinforcing the fiscal position is critical, as government financial stability directly affects the country’s capacity to shield households from cost pressures.
“When the government safeguards its fiscal position, it indirectly protects the people, as fiscal stability allows continued support for the economy,” she told Bernama.
She said current conditions underscore the need to refine government spending, including a gradual shift from broad-based subsidies to more targeted measures.
Targeted subsidies would ensure assistance reaches those most in need, while improving public spending efficiency and contributing to a narrower fiscal deficit over the medium term.
However, she said existing subsidies remain important in cushioning households from price shocks, and any reforms should be implemented gradually to balance fiscal requirements with public welfare.
In the near term, she said, accelerating the adoption of alternative energy sources could help reduce reliance on conventional fuels.
“Malaysia has strong potential in solar energy due to its geographical advantage of year-round sunlight, creating opportunities for more sustainable energy development.
“A transition to alternative energy can reduce exposure to global energy price volatility and support long-term economic stability,” she said.
On recent developments, she said they serve as a reminder for Malaysia to further strengthen its economic strategy and reduce reliance on external factors, particularly in energy and supply chains.— April 24, 2026