This article first appeared in Forum, The Edge Malaysia Weekly on April 20, 2026 - April 26, 2026

Malaysia's economy in 2025 recorded an encouraging performance. Gross domestic product (GDP) grew by 5.2%. Despite facing an uncertain global environment, domestic demand remained strong in leading economic growth. Through strict fiscal discipline, the federal government, for two consecutive years, successfully addressed the fiscal deficit, achieving a better result of 3.7% compared to 4.1% in 2024. Strong macroeconomic indicators provided direct benefits to the people, notably through the lowest unemployment rate in over a decade (2.9%), a low inflation rate (1.4%), and the strengthening of the ringgit as the best-performing currency in Asia in 2025.

For 2026, the national economy was originally projected to grow by approximately 4% to 5%. However, any projections and bright hopes for Malaysia's economy changed following the outbreak of a new conflict in the Middle East on Feb 28 this year. This conflict has the potential to trigger a global economic crisis in the medium to long term if it persists. Among the most significant impacts currently faced by the world is the increase in logistics and transportation costs due to security factors. The overall impact on Malaysia will depend on the duration of this conflict. Therefore, Malaysia's economic growth must be revised if the conflict continues and becomes more serious.

In 2025, Perak recorded investments totalling RM15.75 billion, involving 560 projects: RM10.54 billion in domestic investment and RM5.20 billion in foreign investment. Nearly RM9.39 billion was invested in the manufacturing sector, followed by RM6.35 billion in the services sector, and RM13.49 billion in the primary sectors of plantation and commodities.

State revenue collection in 2025 reached nearly RM1.49 billion, an increase of RM162 million compared to 2024. For four consecutive years, the Perak government has successfully closed the consolidated revenue account with a surplus, recording an RM85 million surplus (pre-audit) as of Dec 31, 2025.

This increased revenue has allowed the Perak government to allocate RM1.61 billion for state expenditure in 2026, the highest allocation in the state's history; RM1.04 billion for management and RM568 million for development.

The federal government has approved 479 development projects in Perak under the 13th Malaysia Plan, valued at RM29.38 billion, comprising 331 extension projects and 148 new projects, which are worth RM9.7 billion. An allocation ceiling of RM1.86 billion has been approved under the First Rolling Plan of 2026.

Approved projects include 23 new projects under the Ministry of Education worth RM623.4 million. Six new projects worth RM150 million were approved for the health sector. The halal industrial ecosystem is further strengthened with an allocation of RM124.7 million for the development of the Perak Halal Industrial Park in Lekir. The development ecosystem of the Kerian Integrated Green Industrial Park (KIGIP) is being reinforced with infrastructure costs of RM2.5 billion for roads, including a new interchange on the North-South Expressway at KM178.3 and new state-to-federal link roads in Section 710, Kerian.

The East-West Highway (Jeli-Gerik), spanning 292km, was opened to the public on Jan 1, 1982, and is now a strategic route and vital link between the East Coast and West Coast of Peninsular Malaysia. Some 115km of this highway lies within Perak. Its physical condition, featuring many curves across hilly terrain, combined with weather and environmental factors, has led to a high incidence of accidents. In 2025 alone, this route recorded 413 accidents, resulting in 26 deaths and 27 serious injuries. The most tragic accident occurred on Monday morning, June 9, 2025, involving 42 students from Universiti Pendidikan Sultan Idris travelling back to campus after celebrating Aidiladha with their families. Fifteen lives were lost in that horrific and heart-breaking accident. Additionally, 20 recorded accidents involved animals. These statistics highlight the high risks of this route, requiring immediate concerted efforts. I deeply appreciate the federal government’s commitment in approving RM350 million for the East-West Highway upgrade, alongside RM100 million for pavement structure repairs.

Traditional methods are no longer sufficient to solve the complex problems of the people or to drive the state's economic growth. Innovation is now a necessity rather than a policy option. A government that fails to innovate will not only lag in meeting the people's expectations but will also lose competitiveness in an increasingly challenging global landscape. A smart state requires a competent human capital base to provide effective services. Therefore, a transformation of public service must be aggressively pursued to produce civil servants skilled in navigating automation and artificial intelligence (AI). The Ipoh City Council, for example, is a leader in utilising 5G and AI for smart traffic management through the Ipoh Integrated Operation Command Centre. Its Smart Traffic Management System (SPLiT) was recognised as the winner of the Perak State Creative Innovation Group (social category) and runner-up at the Johor Smart City Award 2025.

The state's digital infrastructure is being enhanced through the strengthening of the 5G network with 301 new transmitters and the development of a State Data Centre based on green technology. This infrastructure serves as the backbone of a holistic smart state ecosystem to improve the people’s quality of life through a safer, more sustainable and prosperous environment.

The Perak government expresses gratitude to the Malaysian Communications and Multimedia Commission (MCMC) for approving a RM350 million allocation for smart city development, enabling the establishment of the Perak State Integrated Network Operation and Command Centre. Seven out of 15 local authorities (PBT) in Perak have been recognised as Smart City Early Adopters by the Ministry of Housing and Local Government, with six more to follow in 2026. The Integrated Command and Network Centre will act as a catalyst for achieving the smart state vision, driving all PBTs towards Smart City Early Adopter status. This centre will be the operational heart of the state, directly connected to every PBT — not just as a control hub, but as a platform for public safety coordination, disaster management and asset monitoring through data analytics and digital twin technology, supporting strategic decision-making and centralised revenue monitoring.

The most advanced technology is meaningless if it fails to touch the pulse of the people; indeed, there is a risk it may widen the social divide. The inclusive digitalisation agenda has reached 176,379 citizens through the National Information Dissemination Centre (NADI) network. The achievement of Ahmad Salimie Baskani from NADI Bukit Chandan — a person with disabilities who won third place in the Malaysia Culinary World Cup 2025 (biscuit category) — and the success of NADI Felda Gunung Besout Satu students winning three gold medals in international robotics and coding competitions in Bangkok, are success stories achieved when equal opportunities are provided. This is the true manifestation of desired digital transformation: technology that humanises development, preserves human values and empowers every layer of society so that no one is left behind.

Developing a generation aware of environmental sustainability must be prioritised. Fitting with current demands is the effort pioneered by schools through the Green Shoots School Program (Sekolah Tunas Hijau), a catalyst for character building through a culture of sustainable green practices among students. Under phase one, 125 schools successfully reduced 185.61 tonnes of plastic waste, contributing to a reduction of over 629,973.55kg of carbon dioxide equivalent (CO2e) footprint. Children must be taught the importance of recycling, the role of forests as water catchment areas, and the role of mangroves as natural barriers against erosion and storms.

The Islamic Religious Council and the Islamic Religious Department have also shown sensitivity towards environmental sustainability. Sixty-one mosques have been equipped with solar energy systems. Mosques are encouraged to introduce and provide facilities for recycling programmes. Schools under the Islamic Religious Department have adopted a zero-use policy for single-use plastics.

The threat of plastic waste is endless. It is regrettable that public awareness regarding its dangers remains very low. Intervention efforts have not yielded the desired results. To preserve the public interest and ensure the survival of future generations, effective March 1, 2026, the Perak government mandates a ban on single-use plastic carrier bags in all permanent business premises and environmentally sensitive areas. We can no longer delay or simply hope for awareness to arise on its own while the environment is in a critical state.

The treasures of nature are a manifestation of divine greatness. Humans and wildlife were created to live in symbiosis, complementing each other for ecological balance. I welcome the implementation of the Malayan Tiger Conservation Action Plan, which focuses on habitat sustainability, and the establishment of the Perak Elephant Sanctuary Centre in Gerik as a strategic initiative to address human-wildlife conflict humanely and based on conservation science. These efforts are supported by the preservation of nearly one million hectares of permanent forest reserve in this state, reinforced by commitment to the Central Forest Spine Master Plan as a strategic framework for sustainable and integrated land-use planning.

Environmental management can no longer be seen as a side issue in this era of climate change. Climate change has affected millions worldwide. Extreme weather and disasters cause property damage and forced migrations. It increases the risk of massive floods, droughts and landslides that directly impact lives.

When humans commit excessive injustice against the environment, nature reacts by returning it in the form of disasters. The high cost of disaster recovery proves that environmental damage ultimately burdens the nation and state with greater financial liabilities. Nature is responding to human actions that have exceeded ethical and ecological boundaries. Thus, it must be recognised that strategic environmental management will determine the country's future. The true solution lies not in legal enforcement but in a shift of philosophy — from dominance to responsibility, from exploitation to stewardship, and from human arrogance to humility as part of nature.

Based on Nasa satellite data, the world is witnessing an increase in extreme weather intensity, with floods and droughts doubling in the last five years compared to the 2003-2020 average. In fact, we are facing the hydroclimatic whiplash phenomenon; a drastic transition from parched droughts to extreme floods in a short period. This puts pressure on existing infrastructure resilience. Therefore, proactive flood mitigation is prioritised. Focused flood mitigation projects and river maintenance have reduced flood hotspots in the state from 332 locations in 2024 to 280 locations in 2025.

The Blue Economy is an economic model emphasising the sustainable use of ocean, coastal and freshwater resources for growth and improved livelihoods while preserving ecosystem health. The fisheries sector is being strengthened through a science and technology-based Blue Economy approach. Since 2014, some 99 reef units have been deployed to support fish breeding habitats, recreation and maritime sovereignty. In 2025, landings reached 410,759.83 tonnes valued at nearly RM3.37 billion.

Fishery resources depend on healthy marine habitats. Consequently, the Fisheries Department implemented a coral restoration programme in the Sembilan Islands. The department is also active in conserving endangered species like the golden sea cucumber (gamat emas). Between 2024 and 2025, approximately 200 golden sea cucumbers were released near Pangkor Island. Turtle conservation is reinforced through awareness programmes; in 2025, some 52 turtle conservation programmes were held by centres in Teluk Ketapang, Pangkor and Segari.

Efforts to enrich freshwater fish stocks have intensified. Some 2.4 million native fish seeds were released into public waters in 2025. Additionally, 10 tonnes of invasive alien fish species were disposed of to restore the dominance of local species.

Several components of the livestock sector have reached self-sufficiency rates (SSR) exceeding 100%. Meat, eggs and dairy show positive growth: nearly 228.48% for broilers, 198.54% for layers (chicken and duck), and 197.7% for dairy products.

As of 2025, some 2,517 farms covering 8,951ha — representing 13.1% of the total 68,173ha of farmland — have been awarded the Malaysia Good Agriculture Practice (myGAP) certification. For the current year, the Agriculture Department aims for 512 farms to meet the criteria.

Food security ecosystems must be comprehensive, from homes to the community level. By 2025, the Food Security Programme involved 118 mosques as community hubs, while Urban Farming Projects involved 223 communities across housing areas, schools and idle land. With an allocation of RM3.23 million, this has benefited nearly 84,900 people.

Understanding food security must extend to the younger generation. The Education Department conducted the Food Security Innovation Challenge in 116 schools in collaboration with the Perak State Agriculture Development Corporation, teaching students about sustainability, recycling and technologies like the Internet of Things (IoT) and aquaponics.

Through various programmes — career matching, business capital assistance, skills training and welfare — my government continues to address poverty. The number of poor heads of households (KIR) recorded in the Prime Minister's Department's Implementation Coordination Unit as of April 7, 2025, was 25,638. Data from Dec 31, 2025, shows that 11,648 KIR were successfully lifted out of poverty — a 45% achievement, exceeding the federal target of 33%. Based on eKasih data, 732 KIR in absolute poverty were successfully removed from the list, a 100% achievement.

Simultaneously, attention must be paid to the potential emergence of a “new poor” group — those who may fall back below the poverty line due to debt, health issues, rising costs or family crises. Poverty eradication is complex and requires continuous multifaceted approaches. Focus must be placed on increasing the cultural and social capital of poor families, especially children, through equitable educational opportunities. Education is a proven social engineering tool that changes the social and economic status of individuals.

Education is the core of human capital development. Initiatives are underway to ensure no student lacks access or drops out. The launch of the Floating School (PROKHAS) at SMK RPS Kemar, Hulu Perak, which uses a water-based learning model, has addressed dropout issues among Orang Asli students in remote areas. The K11 Comprehensive Education Program was launched to ensure over 1,761 Orang Asli students in three pilot schools complete their studies up to the SPM level.

To ensure children from underprivileged families do not drop out, various initiatives improve the quality of life and learning in hostels through programmes like daily hostel programmes, the Hostel Family System (SisKA) and the MADANI Hostel Transformation Program.

In 2025, RM5.83 milliion in Perak State higher education loans benefited 873 students. The Perak Islamic Religious and Malay Customs Council (MAIPk) channelled RM26.1 million in educational aid to 45,066 students. Yayasan Perak provided RM16.7 million for education empowerment.

Perak houses two prisons and three correctional centres, holding over 8,000 inmates. Every month, an average of 900 inmates complete their sentences and re-enter society. These individuals have gone through the experience of arrest, trial and detention. Ex-convicts often remain trapped in a vicious cycle due to societal stigma and negative perceptions. This cycle will continue if society does not empathise with their situation, forcing them to face prejudice and social discrimination.

There must be a body that looks after prisoners who have completed their sentences. MAIPk has collaborated with the State Prison Department to pioneer the Islamic Correctional Model at Batu Gajah and Tapah Prisons, focusing on the holistic rehabilitation of the physical, emotional, intellectual and moral self. A Tahfiz academy was established at the Batu Gajah Women’s Correctional Centre in January 2025, and a Quranic memorisation programme began in Tapah Prison in February 2025.

Furthermore, I have consented for MAIPk to work with the Prison Department to assist released inmates. I have commanded MAIPk to identify funds to sponsor skills training for those released so they can immediately start productive lives. I urge statutory bodies, state GLCs (government-linked companies), chambers of commerce and NGOs to play a constructive role in helping former inmates start anew.

The youth are assets and heirs to future leadership. Their identity must be strengthened through religious foundations, manners (adab) and comprehensive education. Robust human capital development is critical for a generation capable of achieving extraordinary success.

Youth empowerment programmes must be expanded. The Yayasan Perak student initiative, One Parliament - One Rakan Muda Club, and volunteer activities have polished the leadership potential of the youth. Youth representatives have also been appointed to the Perak Islamic Religious and Malay Customs Council and district Baitulmal committees.

The Perak Youth Aspirations Centre (PASAK) remains committed to youth empowerment through structured development. Two hundred and twenty four programmes and courses are being planned, expected to benefit over 15,000 youth.

To ensure cultural heritage sustainability, the annual People of Remarkable Talent (PORT) Creative Youth Camp has been strengthened as a platform for artistic exploration and leadership under the guidance of leading art figures. Six hundred youth participated, injecting new life into the creative ecosystem.

Perak’s youth have brought honour to the nation in international sports. Ninety-two Perak athletes represented the country at the 2025 Thailand SEA Games. Proudly, 11 SUKMA Perak junior athletes won 11 gold, seven silver and 15 bronze medals. Seventeen athletes represented the country at the 2025 Thailand Asean Para Games, winning seven gold, four silver and six bronze medals.

In an era demanding transparency and efficiency, the Perak government introduced the MESRA Customer Meeting Day (Hari Bertemu Pelanggan) in 2022. This initiative has bridged the gap between the people and the state administration through face-to-face interaction and rapid problem-solving.

This programme symbolises a transformation towards an administration that is open, transparent and people-centric. It proves the administration's readiness to listen and take follow-up action for the people's welfare.

In 2025, eight such programmes were held across Perak, allowing citizens to voice views and problems directly to the authorities.

The global economy faces a major threat from an energy crisis following the war in the Middle East, potentially triggering the worst energy crisis the world has ever seen. No country is immune. As an open economy, Malaysia faces risks regarding oil price shocks and supply security, which will impact production costs, purchasing power and inflation.

The Perak government must learn from current events. We cannot be passive spectators; instead, this crisis should be a wake-up call to pioneer proactive steps toward reducing dependency on fossil fuels. The state must immediately develop facilities to allow citizens the option to switch to alternative energy, including electric vehicles and renewable sources like solar and hydro. Investing in renewable energy is no longer an option; it is a strategic necessity.

In facing these challenges, the people also have a responsibility to practice prudence and thriftiness, helping to reduce fuel consumption and government subsidies. The people should adopt energy-saving lifestyles and avoid waste, especially regarding food.

The conflict involving the US, Israel and Iran is not just a political game; it impacts global stability and human emotion. The nation must prepare “outwardly and inwardly” for a prolonged global crisis. Domestic economic strength must be bolstered, food security ensured and national unity preserved so the people are not easily swayed by sentiment. Harmony is our most valuable asset.

The country may face an energy and food supply emergency. In addressing this, the government and the people must be united. The magnitude of the crisis must be explained through effective communication in simple language. This is not the time to “fish in troubled waters” or exploit the situation for narrow political ends. Members of the Perak State Assembly — both government and opposition — must find common ground. Show a spirit of unity and loyalty to the King and country, prioritising the fate of the people to navigate this worrying situation.

This is an excerpt of the address by Sultan of Perak Sultan Nazrin Muizzuddin Shah at the opening of the Perak State Legislative Assembly on April 14

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