PETALING JAYA: Domestic-centric sectors such as consumer, construction, healthcare, real estate investment trusts or REITs and renewable energy (RE) are likely to benefit from Budget 2026.
Maybank Investment Bank in a report to clients said it remained positive on these sectors while being neutral on banks.
“We expect Budget 2026 to further reaffirm our thesis on domestic-centric drivers and investment upcycle. With tariffs largely addressed and RON95 targeted subsidy rolled-out, we believe market should trend positively going forward," it told clients.
Maybank noted that this year, the FBM KLCI and consumer sector rallied ahead of Budget 2026.
“While expected to be quieter on taxes, we caution on pro-health/social taxes - negative for breweries, tobacco, gaming - and carbon tax. We expect positive impact with regards to utilities, RE and 13 Malaysia Plan (13MP)-related themes like infrastructure (construction, ports), property and plantations, with particular focus on industrial parks development. Further, we expect software companies to benefit with the government's efforts towards digitalisation of public services,” the research unit said.
It said analysing the past 10 years’ pre-budget trends, the FBM KLCI tends to rally in the week before the Budget date and the sector that tends to rally along is typically the consumer sector.
“We believe Budget 2026 would reinforce milestones set in the 13MP, which includes pro-health taxes in addition to industrial developments over the next five years.” Separately, Maybank said a budget is never complete without initiatives for the healthcare sector which it expects to be positive for private listed healthcare operators. All in, we believe the market should react positively to Budget 2026, it said.
In its report ahead of Budget 2026, MBSB Research also said the construction and consumer sectors are likely beneficiaries.
It said the 13MP provides a strong fiscal foundation for Budget 2026, with RM430bil in development expenditure (RM86bil annually) expected to catalyse major infrastructure rollouts ahead of the next general election, due by Feb 2028.
Unlike previous budgets, the upcoming one is expected to signal a clear shift toward strategic project implementation, supported by subsidy rationalisation and the expanded sales and service tax framework, which have created additional fiscal space, it said.
MBSB said given the sector’s strong gross domestic product multiplier, Budget 2026 is likely to reaffirm large-scale public transport, civil infrastructure, flood mitigation and rural connectivity programmes, with particular emphasis on Sabah and Sarawak allocations, which remain key federal development priorities.
"This is expected to provide multi-year visibility and meaningful order book replenishment opportunities for major civil contractors, building materials players and regionally anchored companies," it added.
The consumer sector meanwhile will be anchored by Visit Malaysia 2026, higher wages, and expanded social support, it said.
MBSB noted that the government is targeting 35.6 million tourists and RM147.1bil receipts, supported by promotional spending, infrastructure readiness, and aesthetic enhancement.
A clear tailwind for retailers and food and beverage players, we believe Aeon Co
(M) Bhd will benefit from stronger mall footfall, while QL Resources Bhd via its FamilyMart franchise, remains positioned to serve convenience-seeking customers in transit-heavy locations.
