Consumer, tech, EV, solar, construction, property and building materials segments are Budget 2025 winners

Malaysian Reserve, 19 October 2024

(pic: TMR)

THE consumer, technology, electric vehicles (EVs), solar, construction, property and building materials segments are the winners for Budget 2025, said Malacca Securities Sdn Bhd.

In a research note today, Malacca Securities opined that the automotive, natural gas and solar sectors will also benefit from the positive tone and push for green initiatives under the National Energy Transition Roadmap (NETR).

“The technology, property, construction, and building Materials sectors are also expected to benefit from the focus on artificial intelligence (AI), semiconductor and electrical and electronics (E&E), coupled with the ongoing public infrastructure spending, and property tax relief of RM5-RM7 thousand over the next three years,” it said.

Malacca Securities noted that RM12.8 billion in government guarantees approved for over 57,000 first-time home buyers would have a positive impact on the property sector as it offered affordable home ownership initiatives to the people.

It said the government has approved over 57,000 first-time home buyers through the Skim Jaminan Kredit Perumahan (SJKP), with RM900 million allocated for 48 People’s Residency Programs (PRR) and 14 Rumah Mesra Rakyat (RMR) projects.

It added that the tax relief incentive of up to RM7,000 for residential properties priced at or below RM500,000 and up to RM5,000 for properties priced between RM500,000 and RM750,000 is expected to ease the initial cost of ownership, though the long-term effect is likely to be minimal.

Malacca Securities said that for the technology sector, Khazanah Nasional’s support for the semiconductor industry would position Malaysia to become a semiconductor hub, supported by AI and digital technology education initiatives and strategic investments by Khazanah in the local semiconductor industry.

“Khazanah has pledged RM1 billion to boost investments in the local semiconductor industry, with an additional RM200 million allocated through the K -Youth programme to prepare 11,000 local talents,” it noted.

Malacca Securities said the aim to make Malaysia a semiconductor hub can also be supported by the allocation of RM20 million for Universiti Teknologi Mara (UiTM) to increase the number of E&E engineers.

It highlighted that funding for AI education in research universities is increased to RM50 million, with special tax deductions for private institutions developing advanced courses in digital technology and AI.

On another note, Malacca Securities expects a positive future for the solar and EV segments as green energy policies are extended.

It emphasised that the NETR facilitation fund has been raised from RM100 million to RM300 million, coupled with the introduction of a carbon tax on the iron and steel as well as energy industries by 2026, which aims to encourage the use of low-carbon technology in the industries. — BERNAMA

 

(Web source: https://themalaysianreserve.com/2024/10/19/consumer-tech-ev-solar-construction-property-and-building-materials-segments-are-budget-2025-winners/)