MBSB IB Calls For Stronger Support For Small- And Medium-cap Companies In Budget 2027

By Zufazlin Baharuddin

PETALING JAYA, Oct 2 (Bernama) -- Greater tax certainty for companies and stronger support for small- and medium-cap companies are among the measures that could provide further impetus to Malaysia’s capital market under Budget 2027.

MBSB Investment Bank Bhd (MBSB IB) head of research Imran Yassin Md Yusof said greater tax certainty would be important for companies, particularly to avoid measures that could affect corporate earnings in the immediate term.

“Basically, no any surprise tax that may affect corporate earnings in the immediate term. For example, the market was taken aback by Cukai Makmur, which was implemented in 2022,” he told Bernama.

On small- and medium-cap companies, Imran Yassin said Budget 2027 should provide support to help them prepare for new growth drivers, including automation and new types of business operations.

“I think it is about preparing them for the new economy and new growth drivers, including automation and new types of business operations. So these are very important in the sense that we ensure that they can move forward,” he said.

Imran Yassin pointed out that Budget 2027 should also support the economy amid potential headwinds next year, as this would provide a catalyst for the capital market.

He said the budget was expected to be mildly expansionary, with higher spending to be channelled towards key economic priorities.

Besides, he said the government should continue with its fiscal consolidation path while balancing the need to support the economy and the private sector.

He also called for greater clarity on the tax system, which could help attract foreign investors.

-- BERNAMA