SHAH ALAM, Aug 8 — The Second Selangor Plan (RS-2) provides a clear roadmap for the state’s long-term development, but its success will ultimately hinge on political stability, policy consistency, low regulatory barriers, and an efficient public administration, according to an economist.
Prof Geoffrey Williams said these fundamentals are essential to sustaining investor confidence, particularly amid growing global economic uncertainty.
While Selangor’s goal of becoming a RM600 billion economy by 2030 is achievable, it will be challenging, requiring the state to sustain annual economic growth of nearly seven per cent over the next four years.
“The main challenges will be competition from other states, particularly the Johor-Singapore Special Economic Zone (JS-SEZ), overall economic growth at both the national and global levels, and, above all, political instability,”
“As such, maintaining a stable political environment and consistent policies will be crucial in attracting and retaining investors,” he told Media Selangor.
Williams added that while RS-2 is a comprehensive plan, it does not yet represent a major shift towards improving competitiveness and the ease of doing business.
"This new plan follows a rather standard structure, with five target sectors and 13 strategic initiatives. While these are interesting, they do not signal a shift towards innovation, (greater) competition, agility, regulatory efficiency, or ease of business," he said.
When tabling the Second Selangor Plan (RS-2) at the Selangor State Legislative Assembly yesterday, Menteri Besar Dato’ Seri Amirudin Shari said the state government aims to become a RM600 billion economy by 2030, driven by five high-growth sectors: electrical and electronics, aerospace, automotive, the digital economy, and the creative economy.
This effort is to be supported by 13 strategic initiatives aimed at driving sustainable economic growth, strengthening domestic investment and creating more jobs.
He noted that the state government will diversify its revenue streams through innovative financing, greater involvement of government-linked companies (GLCs) and the private sector, as well as improved governance of state-owned entities.
The RS-2 summary document stated that new revenue sources to strengthen Selangor’s fiscal resilience include GLC dividends, special tax rates or charges for selected industries and activities, and higher returns from state-owned assets and properties.
Meanwhile, Williams noted that with investors able to secure attractive long-term incentives under initiatives like the JS-SEZ, Selangor must strengthen its value proposition to remain competitive.
When asked about the state’s fiscal outlook, he said that economic expansion should naturally boost state revenue. However, Williams questioned whether RS-2 provides sufficient clarity on how additional spending commitments will be financed.
He also welcomed RS-2’s “no district will be left behind” agenda, suggesting its implementation should go beyond economic development to include improvements in social infrastructure.
“The theme is good, but it must focus on social as well as economic infrastructure. Improving housing and social infrastructure, while modernising some districts that look and feel rather old, would be beneficial as this could help harness small and medium enterprises, as well as private investment,” Williams said.
During the tabling, Amirudin pledged that "no district will be left behind" under RS-2 to ensure balanced development across every part of the state, and building on the "no one will be left behind" approach introduced in 2018 to narrow income disparities among individuals and households.
Williams observed that while diversifying state revenue is a positive objective, any new measures should avoid placing additional burdens on businesses and the public.
