PM Anwar's Pro-Growth Agenda Helps Address Governance Weaknesses - CIMB Securities

KUALA LUMPUR, Jan 6 (Bernama) -- CIMB Securities Sdn Bhd has maintained its positive view on the FTSE Bursa Malaysia KLCI for 2026, with an end-2026 target of 1,772 points following Prime Minister Datuk Seri Anwar Ibrahim’s 2026 New Year message in which he outlined a reform-led and pro-growth agenda.

In a note today, the investment bank said the key measures proposed by Anwar, such as the planned tabling of four institutional reform bills at the upcoming January parliamentary sitting, should help address governance weaknesses and are supportive of overall market sentiment.

Additionally, tax relief and compliance-easing measures for small and medium enterprises (SMEs) and businesses are expected to help reduce operating costs.

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"For instance, the reduction in service tax on rentals to six per cent from eight per cent for SMEs is mildly positive for real estate investment trusts, as it lowers the effective tax burden on rental income.

"Meanwhile, continued targeted cost-of-living assistance should be supportive of consumer spending, while the possibility of relaxing import conditions for building materials to contain costs is negative for building materials producers but positive for construction players, given potential margin support," it said.

This targeted assistance includes the Sumbangan Asas Rahmah (SARA) and Sumbangan Tunai Rahmah (STR) programmes’ staged payments, a second one-off RM100 SARA payment to all Malaysians on Feb 9, and an expanded Jualan Rahmah Madani programme.

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-- BERNAMA