Malaysian Shares Rise Further After 2027 Budget Release

Bursa Malaysia’s KLCI rose 0.4% to 1,614 in Monday morning trade, extending last week’s momentum after the government unveiled its 2027 budget. Kuala Lumpur plans MYR 460 billion in spending, broadening welfare aid and tax relief while retaining fuel subsidies to ease household pressures. Officials project slower growth of 4.2—5.2% next year and inflation at 1.8—2.8%, though the fiscal deficit is seen narrowing to 3.3% of GDP from a revised 3.6%. Recent data showed August industrial output and retail sales accelerating, with unemployment edging lower. Meanwhile, U.S. stock futures advanced after President Trump said he is considering joining Saudi Arabia in retaliation against Tehran-backed Houthis following a deadly strike on Riyadh’s main airport. Transport, communication, and financials led gains, while consumer services, retail, and healthcare fell. Lenders advanced, including Maybank (1.2%) and CIMB (1.0%). Other major movers were Sunway (2.0%), MISC (1.6%), and Axiata (1.2%).