KUALA LUMPUR (Sept 22): Consumer and construction stocks could be among the key beneficiaries of the upcoming Budget 2027, as higher cash aid, potential tax relief and increased development spending are expected to support domestic demand and infrastructure activity, CIMB Securities said on Tuesday.
In a note, the research house expects allocations for Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (Sara) to rise by about RM2 billion to RM17 billion.
It believes the higher allocation “could provide a modest boost to mass-market consumption, particularly benefitting companies exposed to lower- and middle-income households”.
Among the counters poised to benefit are 99 Speed Mart Retail Holdings Bhd (KL:99SMART), Eco-Shop Marketing Bhd (KL:ECOSHOP) and MR DIY Group (M) Bhd (KL:MRDIY), as well as food and beverage manufacturers Nestle (Malaysia) Bhd (KL:NESTLE), Life Water Bhd (KL:LWSABAH) and QL Resources Bhd (KL:QL).
CIMB Securities also expects gross development expenditure to rise to RM83 billion in 2027, with higher spending on water infrastructure among the potential areas of focus.
Among the counters it sees as well positioned to benefit are Gamuda Bhd (KL:GAMUDA), IJM Corp Bhd (KL:IJM), Malayan Cement Bhd (KL:MCEMENT) and Insight Analytics Bhd (KL:IAB).
Healthcare sector seen supported
Separately, Maybank Investment Bank expects Budget 2027 to remain supportive of the healthcare sector.
Potential measures include tax relief for healthcare and medical insurance, support for the nationwide MediAsas rollout, continued medical-tourism incentives and greater public-private collaboration to ease congestion at public hospitals, it said.
Local pharmaceutical and biopharmaceutical manufacturers may also benefit from continued government support for manufacturing, procurement, research and development, Maybank IB said.