Malaysia’s 2026 Budget to Give Markets a Boost, Analysts Say

Malaysia’s spending plan for 2026 will be mildly positive for local assets given the absence of negative surprises, according to analysts.

A boost in cash handouts will benefit consumer firms, while allocations to strategic sectors such as semiconductors, clean energy, and digital transformation will help develop businesses across value chains. Analysts are also optimistic over the government’s plan to reduce the fiscal deficit to 3.5% of gross domestic product from 3.8% in 2025.