RM83 Bln Development Expenditure Can Spark Jobs Creation, Business Activities -- RHB IB
KUALA LUMPUR, Oct 17 (Bernama) -- The government’s planned RM83 billion development expenditure under Budget 2027 could create jobs, support small businesses, strengthen demand across key sectors and generate wider benefits for Malaysians, according to RHB Investment Bank Bhd (RHB IB).
The investment bank said development expenditure was expected to increase from RM81 billion in 2026, with major allocations directed towards transportation, education and training, healthcare, and trade and industry.
“Infrastructure modernisation, public transport expansion and green-transition initiatives should sustain public investment in the short to medium term while crowding in private-sector participation,” it stated in a research note.
RHB IB expects infrastructure modernisation, public transport expansion and green-transition initiatives to sustain public investment while encouraging greater private-sector participation.
Major projects set to benefit include the East Coast Rail Link (ECRL), Elevated Autonomous Rapid Transit (E-ART) system, KL NODE and LRT3 Phase 2.
Meanwhile, continued data-centre development in Selangor, Johor and Negeri Sembilan could support construction activity and boost demand for specialised engineering services.
Special Economic Zones Attract Investment
RHB IB identified the expansion of special economic zones as a key investment catalyst, particularly the Johor-Singapore Special Economic Zone (JS-SEZ).
“The government is expected to further strengthen the zone through the launch of a comprehensive master plan and blueprint by year-end,” it said.
The zone attracted approximately RM132 billion in investments between 2025 and June 2026, while the proposed Sedenak Nexus is projected to attract another RM12 billion and create 45,000 jobs.
The bank said these initiatives could strengthen Johor’s position as a regional hub for advanced manufacturing, logistics, digital infrastructure and high-value services.
Meanwhile, trade along the Bukit Kayu Hitam-Sadao corridor reached RM27 billion in the first half of 2026, supported by a direct road link between Malaysia and Thailand.
The corridor has the potential to develop into a logistics, warehousing, and cross-border manufacturing hub that benefits Kedah and Perlis.
Focus on High-value Industries
RHB IB also highlighted efforts to enhance Malaysia’s Global Services Hub incentive framework to attract regional headquarters, treasury centres and shared services operations.
The expansion of such activities could increase demand for skilled professionals and support higher-paying employment in finance, accounting, technology and management.
Strategic industries identified for further development include semiconductors, artificial intelligence, digital services, energy transition, pharmaceuticals, logistics and aerospace.
The investment bank added that support through tax incentives, investment facilitation, regulatory measures and skills development can also encourage technology transfer, research and development, innovation and high-skilled job creation.
-- BERNAMA