CIMB Flags Consumer and Construction Stocks for Budget 2027 Gains

CIMB Securities identifies consumer and construction equities as primary beneficiaries of Malaysia’s upcoming Budget 2027. The research house anticipates that increased fiscal support for low-income households and expanded infrastructure spending will drive domestic demand and project activity.

According to a note published by The Edge Malaysia, these measures are expected to directly boost revenue for companies serving mass-market segments. The firm highlights specific allocations for cash transfers and development expenditure as key drivers for these sectors.

Cash Aid Boosts Retail Sales

CIMB expects allocations for the Sumbangan Tunai Rahmah and Sumbangan Asas Rahmah programs to increase by approximately RM2 billion, reaching a total of RM17 billion. This additional funding is projected to provide a modest lift to mass-market consumption, particularly benefiting retailers and manufacturers with high exposure to lower- and middle-income demographics.

Specific names poised to capture this demand include 99 Speed Mart Retail Holdings, Eco-Shop Marketing, and MR DIY Group. Food and beverage producers such as Nestle Malaysia, Life Water, and QL Resources are also listed as likely beneficiaries of the increased disposable income among targeted households.

Infrastructure Spending Supports Construction Firms

The bank forecasts that gross development expenditure will rise to RM83 billion in 2027, with a notable focus on water infrastructure projects. This increase in public capital spending is expected to sustain order books and revenue growth for major construction and materials companies.

Gamuda, IJM Corp, Malayan Cement, and Insight Analytics are cited as well-positioned to benefit from this infrastructure pipeline. The expansion in development spending provides a direct link between government fiscal policy and the operational performance of these industrial and building material suppliers.

Healthcare Sector Receives Policy Support

Maybank Investment Bank separately noted that Budget 2027 is likely to maintain supportive measures for the healthcare sector. Potential actions include tax relief for medical insurance, support for the nationwide MediAsas rollout, and continued incentives for medical tourism to ease congestion in public hospitals.

Local pharmaceutical and biopharmaceutical manufacturers may also see benefits from sustained government support for manufacturing, procurement, and research and development. These policy directions aim to strengthen the domestic health ecosystem and support private-sector collaboration.