The construction sector is set to benefit from the announcement of various infrastructure projects in Budget 2024.
PETALING JAYA: AHAM Capital has picked the healthcare, construction, renewables and consumer sectors as potential winners of the recently tabled Budget 2024.
On the healthcare sector, it highlighted the substantial allocation increase for the health ministry – from RM36.3 billion in 2023 to RM41.2 billion in 2024 – the largest rise in 10 years.
“This bodes well for healthcare players as the augmented funding supports potential private partnerships, opening new avenues for growth,” it said.
Regarding the construction sector, AHAM Capital sees potential benefits for the industry due to various infrastructure projects, particularly in East Malaysia such as the Sabah Pan Borneo project and the Sarawak-Sabah Link Road project Phase 2.
“Other flood mitigation initiatives and the revival of several LRT 3 stations are also added as catalysts,” it noted.
The asset management firm also projects that the renewables sector – such as solar energy firms – will benefit from the government’s commitment to its energy transition agenda via the National Energy Transition Roadmap.
Not only that, it also views domestic consumer spending to strengthen following the continuation of cash transfer programmes, notably the Rahmah Cash Aid programme with a budget allocation of RM10 billion.
As a whole, AHAM Capital holds a neutral position on Budget 2024 due to the lack of major tax reforms.
“In our view, Budget 2024 is market-neutral. What’s notable is that the budget did not introduce any punitive tax policies, such as windfall taxes, gaming taxes or excise duties which had been subjects of concern in previous years.
“However, the omission of any mention of a potential goods and services tax was a minor disappointment from a fiscal consolidation standpoint,” it said.
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