️Macro Alpha Analytics🫆

E-invoicing

Airport upgrades in Penang, Sabah, and Sarawak get RM2.3 billion, to be completed by 2028

99SMART 、ECOSHOP 、FFB 、AEON

A one-time Sumbangan Asas Rahmah (Sara) RM100 payment will be given again to 22 million Malaysians aged 18 and above in mid-February next year

🇲🇾 (AM) Budget 2026 – Key Takeaways, little alpha Likely Budget 2026 proxies: 🔌 TNB – Anchor for RM43b grid upgrade, also central to CCS/BESS rollout under carbon tax prep. 🏗️ Infra contractors – Powerwell, SMRT (substation switch gear and IoT) and Jati Tinggi, MN, SSB8 (transmission EPC) are most directly levered to grid spend. 💾 Tech/Semi – too broad, wait for Paul → beneficiaries of semiconductor incentives. 🌊 Utilities/Water Infra – KJTS (power & cooling infra), Rainhill (water treatment for DC/industrial parks). 🌲 East Malaysia – • Sarawak: Pansar as contractor proxy on grid/M&E/state infra; underpinned by Sarawak Energy’s hydro & ASEAN Power Grid ambitions. 🔹 Federal spend: RM419b, with additional RM50b via GLIC/SOE capex (“shadow budget”). Fiscal deficit guided to 3.5% of GDP. 🔹 Petronas dividend: Cut to RM20b (lowest since 2017) – Govt less reliant on Petronas cash, signalling capex selectivity & energy transition focus. 🔹 Subsidy reform: Diesel rationalisation already saved RM5b; BUDI95 keeps RON95 at RM1.99/litre for citizens. Total rationalisation savings ~RM15.5b/year redirected into social aid & infrastructure. 🔹 GLIC mobilisation: National funds (EPF, Khazanah, PNB, KWAP) to channel RM50b into domestic projects – grid, transport, ports, industrial parks – without widening the fiscal deficit. 🔹 Power & Datacentre push: RM43b TNB grid upgrade plan continues; Budget emphasis on grid reliability and datacentre capacity. 🔹 Semiconductor incentives: Continued tax allowances/grants to anchor upstream capacity amid global tariff shifts. 🔹 Carbon tax groundwork: Carbon pricing framework targeted for 2026; early beneficiaries include renewables, CCS, and efficiency retrofits, while heavy energy users will face higher compliance costs. Bottom line: Less about handouts, more about GLIC capex + grid/AI build-out + carbon pricing prep.

Malaysia’s Budget 2026 “MADANI Budget IV: The People’s Budget” Focuses on good governance, fiscal discipline, and equitable prosperity under the 13th Malaysia Plan (RMK13). 1. Economic Outlook GDP Growth (2026): Expected at 4.0–4.5% despite global uncertainties. Fiscal Deficit: Target to reduce from 3.8% (2025) to 3.5% (2026). Federal Revenue: Projected to rise to RM343.1 billion. Total Budget Allocation: RM470 billion, comprising: RM338.2b operating expenditure RM81b development expenditure RM30b GLIC investments RM10b public-private investments RM10.8b statutory body & GLC investments 2. Governance & Fiscal Reforms Continued enforcement of Fiscal Responsibility Act (FRA) and Government Procurement Bill to strengthen transparency. Corruption recovery & penalties since MADANI administration: RM15.5 billion recouped. RM700 million allocated to enhance enforcement agencies (MACC, PDRM, Customs, etc.). Digital tax stamps, e-Invoicing, and automated stamp duty system to combat leakage and boost compliance. Tax reliefs for civil society anti-corruption programs. 3. Digital Governance & Public Service Efficiency STAR Team saved RM1.1b by reforming internal processes. MyDigital ID targets 15 million users by end-2025. GovTech Malaysia empowered to build in-house digital services. Kiosk MADANI service points to be rolled out nationwide. UTC modernization and improved diplomatic facilities (RM31.5m for embassies). 4. Institutional Strengthening Parliament Allocation: RM220 million (+RM5m for Select Committees). APPGM community programs extended to more constituencies (RM15m). Ongoing legal reforms: separation of AG & Public Prosecutor roles, new Admiralty and Coroner Bills, Consumer Lemon Law inclusion. 5. People-Centered Measures Targeted Subsidies To eliminate leakages and focus benefits on Malaysians: Floating chicken & egg prices saved RM2b. Targeted electricity subsidy saved RM6b (85% users unaffected). Targeted diesel subsidy saved RM5b (farmers, fishermen, transporters protected). Potential RON95 subsidy targeting: RM2.5b savings, RM1.99/L maintained for eligible citizens. Total national savings: ~RM15.5b/year, redirected to welfare and infrastructure. MADANI Initiatives for the People RM1 billion for “MADANI Empowerment for the People”: Village micro-economy funds (up to RM100,000 per community). Expansion to 500 MADANI villages & 1,500 schools. Solar MADANI extended nationwide. Sejahtera MADANI corporate poverty eradication fund (RM120m raised). Tax incentives for companies/individuals contributing to community programs. Mobile Government Services RM110m for outreach: mobile clinics, banks, courts, and STEM outreach in rural areas. Expansion of mobile services in Sabah & Sarawak (BSN, labor & children’s courts). 6. Development by State Comprehensive list of infrastructure projects across all states, including highways, healthcare centers, flood mitigation, and schools. Sabah & Sarawak receive record federal development allocations: Sabah: RM6.9b (from RM4.4b in 2022) Sarawak: RM6b (from RM2.9b in 2022) Special grants doubled to RM600m. RM1.2b for electricity, RM1b for water projects, RM1.67b for Pan Borneo Highway continuation. Total infrastructure projects worth RM48b. SALAM Submarine Cable (RM2b) to improve East–West Malaysia connectivity. 7. High-Value Economy Agenda Focus on semiconductors, renewable energy transition, and digital sectors. ASEAN Business Entity (ABE) status for regional companies. Family Office incentives (Forest City) attracting RM400m AUM, targeting RM2b by 2026. Investor Pass and Talent Fast Track Visa to attract global talent. Outcome-Based Tax Incentive Framework to launch fully in 2026 (aligned with NIMP). 8. Key Messages Fiscal discipline and moral governance as the foundation of national recovery. Reform-driven, pro-rakyat budget that redistributes savings from subsidies and corruption cleanup into development, infrastructure, and jobs. Strengthened institutional integrity and digital transformation to ensure long-term resilience.

👍🙌

Sabah RM 6.9b | Sarawak RM 6 b

The government’s combined debt and liabilities stood at RM1.69 trillion, equivalent to 84.1 per cent of gross domestic product (GDP) as at end-June 2025, compared with RM1.63 trillion or 84.5 per cent of GDP as at end-December 2024, according to the Ministry of Finance. (MoF)

https://www.bloomberg.com/news/articles/2025-10-10/petronas-dividends-to-malaysia-to-fall-38-on-oil-price-slump Petronas dividends to be MYR20b in 2026 (from MYR32b in 2025)

Value : RM 498 mil

Value : RM 412 mil