Kuala lumpur: Analysts said Monday that Malaysia's 470-billion-ringgit (111-billion-U.S.-dollar) Budget 2026 should benefit several sectors, including technology, consumer, construction, and renewable energy.

According to Namibia Press Agency, Kenanga Research noted that Budget 2026 represents a holistic push in artificial intelligence (AI), complementing the technology upstream push. The research house highlighted that the Budget 2026 continues to enhance the tech ecosystem upstream, benefitting potential national champions. It also emphasized the commitment to developing the ecosystem, particularly in government and industry adoption of AI. This includes setting aside cross-ministerial allocations and implementing a National Action Plan 2030.

Meanwhile, Maybank Investment Bank indicated that higher government stimulus payments announced for 2026, along with a 7 percent salary adjustment for the civil service beginning January 1, 2026, alongside the conclusion of pre-announced subsidy rationalization plans, should alleviate concerns of rising household expenditure and inflationary pressures for consumers.

CIMB Securities considered the Budget 2026 as expansionary for Malaysian contractors. Despite a slight increase in headline development expenditure projected at 81 billion ringgit (+1.3 percent year-on-year), the research house noted that total public investments could reach 131 billion ringgit due to an additional injection of funds from federal bodies or government-linked companies totaling 50.8 billion ringgit.

Philip Capital mentioned that the Budget 2026 reaffirms the government's commitment to strengthening regional energy connectivity through initiatives like the ASEAN Power Grid and the Vietnam-Malaysia-Singapore renewable energy project. The research house pointed out that Malaysian utility firm Tenaga Nasional Berhad's 43-billion-ringgit investment to upgrade the national power grid is expected to generate positive effects across the domestic supply chain.