Malaysia's 2027 Budget Likely to Benefit Property, Consumer, Construction Sectors

0903 GMT - Malaysia's Budget 2027 is expected to benefit the property, consumer, construction, oil and gas and non-bank financial sectors, RHB IB analyst Alexander Chia says in a note. Higher labor costs as the country plans to raise the minimum wage could weigh on plantation, technology and rubber product companies, he says. Development spending will rise to 83 billion ringgit in 2027 from a revised 81 billion ringgit in 2026, should support transport and infrastructure projects, including railways and highways, he reckons. A 2.5 billion ringgit allocation to reduce water losses could also benefit pipe contractors, he adds. However, with geopolitical uncertainty and macroeconomic pressures expected to keep equities range-bound, Chia prefers a defensive investment approach and selective buying during market weakness.