SHAH ALAM, Nov 15 — Selangor’s move to diversify its revenue streams has earned praise from economists, who commended the state government for its proactive fiscal strategy amid growing global uncertainties.
They noted that initiatives like the Dark Fibre Masterplan and water abstraction charges signal a clear shift away from traditional land-based income.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said Selangor has been consistent in widening its income base and channelling the gains to lift the “floor and the ceiling” for vulnerable groups.
"When we talk about the floor, one of the main agendas is how a government tries to help and increase incomes.
“In this case, when we look at Selangor's position, I observe that year after year it has continued to strengthen,” he said during a post-2026 Selangor Budget discussion hosted by Media Selangor yesterday.
During the budget’s tabling, Menteri Besar Dato' Seri Amirudin Shari announced an initial RM1 million allocation to develop the masterplan, which will involve laying 889 kilometres of new fibre optic lines across the state.
This will allow Selangor to lease underground optic lines to Internet service providers as a recurring revenue stream.
As part of broader revenue measures, he said the state government has also collected RM33.61 million as of October 2025 from the RM70 million targeted under water abstraction charges.
The funds will be used by the Selangor Water Management Authority (Luas) to improve water quality in line with long-term sustainable resource management goals.
Afzanizam added that Selangor’s sustained fiscal surpluses allow it to explore new revenue instruments rather than relying heavily on quit rent and land premiums.
"For several years, the fiscal position of the Selangor government has recorded a surplus, and the Selangor government also tries to ensure that the surplus is utilised in the best way," he said.
Revenue diversification will help Selangor weather global uncertainties, including the full impact of United States’ import tariffs in 2026.
In Afzanizam’s view, future economic plans must ensure that assistance "reaches those we target" while maintaining the competitiveness of key sectors like semiconductors and aerospace.
Meanwhile, Management and Science University senior economics lecturer Siti Asmahan Mohd Ali said the state’s social spending demonstrates that the budget "covers all layers of society and prosperity for everyone".
"When we look at education, for example, we really see the government is being very serious. With an increase of RM55 million, it means that anyone who wants to study can study, right down to kindergarten," she said.
Amirudin announced allocations of over RM136 million to education for next year, a RM55 million increase from the 2025 budget. It is the highest in Selangor’s history.
Asmahan also echoed the Menteri Besar’s message that "survival is not enough", saying that long-term education investment is essential for innovation and to develop a high-skilled workforce.
