PETALING JAYA: Domestic-centric sectors such as consumer, construction, healthcare, real estate investment trusts (REITs) and renewable energy (RE) are likely to benefit from Budget 2026, which will be tabled on Friday.
Maybank Investment Bank Research (Maybank IB), 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 the RON95 targeted subsidy rolled out, we believe the market should trend positively going forward,” it told clients.
The research house noted that this year, the FBM KLCI and consumer sector had 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 a positive impact on utilities, RE and 13th Malaysia Plan (13MP)-related themes like infrastructure (construction, ports), property and plantations, with particular focus on industrial parks development.
“Furthermore, we expect software companies to benefit with the government’s efforts towards digitalisation of public services,” the research house said.
It said analysing the past 10 years’ pre-budget trends, the FBM KLCI, especially consumer stocks rallied in the week before the budget announcement.
“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,” it added.
Separately, Maybank IB said there would likely be initiatives for the healthcare sector which would be positive for private listed healthcare operators.
“All in all, we believe the market should react positively to Budget 2026,” it pointed out.
In a report, MBSB Research also said the construction and consumer sectors were likely beneficiaries.
It said the 13MP provided 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 February 2028.
The upcoming budget is expected to signal a clear shift toward strategic project implementation, supported by subsidy rationalisation and the expanded sales and service tax framework, which had created additional fiscal space, the research house said.
MBSB Research 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.
“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,” the research house added.
The consumer sector would be anchored by Visit Malaysia 2026, higher wages and expanded social support, it said.
MBSB Research noted that the government is targeting 35.6 million tourists and RM147.1bil in 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 Family Mart franchise, remains positioned to serve convenience-seeking customers in transit-heavy locations.”
