Malaysia's budget is expected to have limited boost for the construction sector, CIMB maintains neutral rating
智通财经2026/10/08 02:42(1) CIMB Securities analysts Kenny Mak Hoy Ken and Wei Yi Tan stated in their report that Malaysia's upcoming 2027 Budget is unlikely to provide a significant boost to the domestic construction sector. (2) The analysts expect development expenditure to increase by 3.8% to 83 billion ringgit in 2027, with much of the spending likely to be spread across small to medium-scale projects. (3) The focus is expected to remain on narrowing regional development gaps, especially in East Malaysia and inland areas. (4) Project awarding and execution will be more important than overall allocations, while higher energy and logistics costs could put pressure on contractors' profit margins starting from the fourth quarter. (5) CIMB maintains a neutral rating on Malaysia's construction sector and remains positive on Gamuda and IJM.
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