Budget 2027 May See Higher Development Expenditure Allocation For Transport Subsector - RHB IB
KUALA LUMPUR, Oct 6 (Bernama) -- Budget 2027 is likely to focus on a potentially higher allocation for gross development expenditure (DE) in the transportation subsector, said RHB Investment Bank Bhd (RHB IB).
In a note today, the investment bank said the projection was underpinned by higher allocations for the transportation subsector in previous Budget announcements.
“Recall that approximarely RM17.6 billion or 21.6 per cent out of the RM81 billion worth of gross DE initially budgeted for 2026 (2025’s revised estimate of 20.5 per cent) was for the transport subsector,” it said.
RHB IB also expects Malaysia’s DE to increase in the second half of 2026 (2H 2026), in line with historical trends.
“So far in 1H 2026, RM32.5 billion (out of the RM81 billion initially budgeted gross DE for 2026) had been spent as net DE.
“As such, this may translate into upcoming job wins (for listed construction companies) towards the end of 2026, including Segment 2 of the Penang Light Rail Transit (LRT) project and potentially new government hospitals such as the Bandar Enstek Hospital in Negeri Sembilan, among others,” it added.
The 2027 Budget will be tabled by Prime Minister Datuk Seri Anwar Ibrahim in the Dewan Rakyat this Friday (Oct 9) at 3:30 pm.
Meanwhile, the investment bank viewed that the revision to the minimum wage next year would not have a massive adverse impact on contractors.
“Data from the Construction Industry Development Board shows that the minimum daily wage for a general worker (local and foreign) in Selangor currently stands at RM100 per day (excluding overtime) with most working six days a week – translating into a monthly salary of RM2,400,” it added.
-- BERNAMA