RHB IB forecasts larger transport development spending in Malaysia's 2027 budget

RHB Investment Bank Bhd projects that Malaysia's 2027 budget will likely increase the share of gross development expenditure devoted to the transport subsector, following a pattern of higher allocations in earlier budgets. For 2026, roughly RM17.6 billion—about 21.6 % of the RM81 billion total—was earmarked for transport. The bank expects the overall development spending to rise in the latter half of 2026, which should trigger new contracts for listed construction firms, including the second segment of the Penang Light Rail Transit project and the planned Bandar Enstek Hospital in Negeri Sembilan.

The upcoming budget will be tabled by Prime Minister Datuk Seri Anwar Ibrahim in the Dewan Rakyat on Friday, October 9. RHB IB also downplays the impact of the upcoming minimum-wage rise on contractors, citing current wage levels from the Construction Industry Development Board.