Higher household income will drive consumer stocks

Nestle CEO Alois Hofbauer posing with some of the company’s products. Analysts say Nestle is one of the consumer stocks that will benefit from the measures introduced under Budget 2018. — Bernama

THE consumer sector will benefit from the measures introduced under Budget 2018 to support household spending in Malaysia.

With a lower income tax for the 2018 year of assessment and higher income for civil servants, and cash handouts through next year, companies in the food and beverage (F&B) and retail industries are likely to see higher sales.