KUALA LUMPUR, Nov 5 (Bernama) -- Bursa Malaysia closed higher, buoyed by Bank Negara Malaysia’s (BNM) decision to maintain the Overnight Policy Rate (OPR) at 2.75 per cent, alongside positive cues from Wall Street. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 19.30 points, or 1.19 per cent, to 1,635.86 from Wednesday’s close of 1,616.56. The benchmark index opened 6.72 points higher at 1,623.28, and fluctuated between an intraday high of 1,642.44 and a low of 1,622.62 during the trading session. However, market breadth was negative, with losers outnumbering gainers 723 to 497, while 466 counters were unchanged, 1,075 untraded and 10 suspended. Turnover rose to 3.74 billion units valued at RM3.61 billion compared with yesterday’s 2.81 billion units valued at RM2.57 billion.
Prime Minister Lawrence Wong will deliver Singapore Budget 2026 on February 12 at 3:30 PM, marking the first Budget under the 15th Parliament.
If Budget 2025 focused on recovery, Budget 2026 signals a pivot toward high-quality, sustainable growth.
Macro Backdrop: Strong Surplus, Stronger Leverage
After a resilient 2025:
GDP growth: 4.8% (advance estimate)
Operating revenue: S$98.5B (first 9 months)
Corporate tax: +11.6% YoY
Key point: Singapore enters Budget 2026 with meaningful fiscal surplus and policy flexibility.
This “dry powder” gives policymakers room to:
Cushion cost-of-living pressures
Accelerate green and digital transformation
Strengthen long-term competitiveness
1️⃣ Cost-of-Living Relief — But Targeted
Markets expect:
Continued utilities and transport subsidies
SME rebates for rentals and utilities
Extension of transfer schemes
However, broad stimulus is unlikely.
Relief will be precise, not expansionary — balancing social equity with fiscal discipline.
2️⃣ Tax Strategy: Stability Over Shock
No sweeping tax hikes expected.
Instead:
Carbon tax phase-in targeting high-emission sectors
Enhanced R&D and innovation deductions
Digital tax compliance upgrades
Singapore’s 17% corporate tax rate remains competitive, reinforcing FDI appeal.
Signal to investors: pro-growth, ESG-aligned, fiscally disciplined.
3️⃣ Infrastructure: Multi-Year Capex Visibility
Major pipeline projects:
Tuas Port expansion
MRT line extensions
Climate resilience investments (sea walls, solar grids)
Green and transport infrastructure remain core priorities.
Construction, engineering, and green REIT exposure could benefit from sustained public capex.
4️⃣ Labor & Structural Reforms
Likely measures:
Flexible foreign worker quotas (construction, marine, process sectors)
Multi-tiered levies to balance business costs and local employment
Investment framework targeting AI, semiconductors, biotech
Goal: Protect competitiveness without igniting wage inflation.
5️⃣ Market Implications
Analysts see upside momentum building:
Green REITs & infrastructure plays
Advanced manufacturing & tech exporters
Mid-caps positioned for structural rerating
DBS projects STI at 4,880 by end-2026, driven by ~8.8% EPS growth and strong capital inflows.
Budget 2026 is less about stimulus, more about structural acceleration.
Bottom Line
Singapore’s fiscal strength allows it to:
Support households
Maintain tax competitiveness
Invest aggressively in climate, tech, and infrastructure
Budget 2026 may mark the transition from recovery to reinvention — a shift investors cannot ignore.
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