Winners and losers from Malaysia’s 2025 spending plan

Malaysia’s retailers and tourism-related firms are poised to benefit from the federal budget for next year.

KUALA LUMPUR:

Malaysia’s retailers and tourism-related firms are poised to benefit from the national spending plan for next year as the government increases cash handouts and incentives to mitigate the impact of some subsidy removals.

The country will raise the minimum wage level to RM1,700 from RM1,500 in February and set aside RM13 billion for poorer Malaysians, Prime Minister Anwar Ibrahim said in his budget speech today.

The government plans to trim petrol subsidies from mid-2025 to dial back its subsidies and social assistance bill by 14.4% next year.

Other measures announced include allocations to boost the tourism sector and facilitate energy transition.

Here’s a look at some of the key winners and losers of the budget for 2025:

Winners

Consumption

A higher minimum wage and targeted aid, coupled with an earlier broad pay-hike for civil servants, would raise the disposable income for consumers. That should benefit retailers such as 99 Speed Mart Retail Holdings Bhd and MR DIY Group M Bhd.

Energy firms

The government announced a RM300 million allocation as part of its energy transition plan to achieve net-zero goal by 2050. That’s triple the RM100 million set aside for this year.

This is set to benefit companies involved in developing large-scale solar fields such as UEM Sunrise Bhd and SD Guthrie Bhd as well as grid operators such as Tenaga Nasional Bhd.

Tourism

Malaysia is setting aside RM550 million to promote tourism ahead of its Visit Malaysia Year in 2026. Entertainment and gaming companies such as Genting Bhd and airline operator AirAsia X Bhd may benefit from a boost in tourism receipts.

Palm Oil planters

The government’s plan to increase the threshold on profit that palm oil companies have to pay a windfall tax will positively impact earnings of major planters such as SD Guthrie, IOI Corp and Kuala Lumpur Kepong Bhd.

Losers

Beverage makers

Malaysia will increase its excise duty on sugary beverages by 40 sens per liter starting Jan. 1, adding on to the sugar tax that was increased under the 2024 budget. That may raise the cost for companies such as Nestle Malaysia Bhd and Fraser & Neave Holdings Bhd.

Steel producers

Anwar announced that a carbon tax will be imposed on the steel-making industry in 2026, which may impact producers such as Southern Steel Bhd.

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Winners and losers from Malaysia’s 2025 spending plan

Energy firms and palm oil planters will benefit from the latest budget, while beverage makers are on the losing end.