KUALA LUMPUR, Oct. 14 (Xinhua) -- Analysts said Monday that Malaysia's 470-billion-ringgit (111-billion-U.S.-dollar) Budget 2026 should benefit several sectors, including technology, consumer, construction, renewable energy.
Kenanga Research said in a note on Monday that Budget 2026 is a holistic push in artificial intelligence (AI) to complement the technology upstream push.
According to the research house, the Budget 2026 continues to nudge the tech ecosystem upstream, benefitting potential national champions.
"Even so, one positive surprise in terms of commitment shown is in holistically developing the ecosystem, especially in government and industry adoption of AI, which is a game changer. This includes setting aside cross-ministerial allocations, and implementing a National Action Plan 2030," said the research house.
Meanwhile, Maybank Investment Bank said in a note that with higher government stimulus payments announced for 2026, phase 2 of the civil service salary adjustments of 7 percent on Jan. 1, 2026, and the conclusion of its pre-announced subsidy rationalization plans including chicken, eggs, petrol, this should provide some reprieve to consumers over concerns of rising household expenditure and general inflationary pressures.
CIMB Securities said that it considered the Budget 2026 to be expansionary for Malaysian contractors.
Although headline development expenditure is only projected to be slightly higher at 81 billion ringgit (+1.3 percent year-on-year), the research house noted that total public investments could touch 131 billion ringgit, thanks to an additional injection of funds totaling 50.8 billion ringgit from other federal bodies or government-linked companies.
Philip Capital, on the other hand, said in a note that the Budget 2026 reaffirms the government's commitment to strengthening regional energy connectivity through initiatives such as the ASEAN Power Grid and the Vietnam-Malaysia-Singapore renewable energy project.
According to the research house, the 43-billion-ringgit investment by Malaysian utility firm Tenaga Nasional Berhad (TNB) to upgrade the national power grid is expected to generate positive spillover effects across the domestic supply chain.
