Corporate Malaysia Should Use Budget 2027 To Raise Investment, Productivity
KUALA LUMPUR, Oct 12 (Bernama) -- Corporate Malaysia should use the opportunities presented by Budget 2027 to step up investment, improve productivity and build more sustainable and internationally competitive businesses, said CGS International Securities Malaysia Sdn Bhd (CGS MY).
Its chief executive officer Khairi Shahrin Arief Baki said the budget gives businesses more tools to invest in technology, skills, sustainability and productive capacity amid global adversity.
“Government can set the conditions, clear the barriers and lay the foundations. Whether those foundations translate into stronger businesses, better jobs and higher incomes is ultimately up to companies,” he said in a statement today.
CGS MY said measures supporting corporate transformation include accelerated capital allowances for locally produced plant and machinery, information and communications technology equipment and software, extended until end-2030.
Other measures include investment tax allowances of up to 100 per cent for qualifying green technology projects and assets, and support for micro, small and medium enterprises (MSMEs) adopting artificial intelligence and automation.
Budget 2027 proposed raising the minimum wage from RM1,700 to RM2,000 from June 2027, but MSMEs recording annual sales below RM50 million are exempted.
Government-linked investment companies and government-linked companies will also raise their living-wage benchmark to RM3,400 a month. Other measures in the area of wage and workforce development include an RM8 billion allocation for technical and vocational education and training (TVET) and tax deductions for companies taking part in the BAKAT MADANI training programme.
“A higher wage floor is not only a higher cost of doing business. It tells companies that the low-wage, low-productivity model is running out of road.
“The way forward is to invest in skills, technology, automation and better-designed jobs, so that higher wages rest on higher productivity,” Khairi said.
He said productivity without better wages leaves households outside the gains of growth, while wages without productivity cannot hold.
“Malaysia needs both, rising together,” he added.
Khairi said the same logic applies to sustainability, as stronger green investment incentives and carbon pricing on the policy agenda mean companies that move early will have greater control over the pace and cost of that transition.
“Carbon pricing is becoming part of Malaysia’s business landscape. Companies can treat it as a compliance issue, or as a reason to become more efficient and more resilient.
“Sustainability done well can be a source of productivity, resilience and long-term value,” he said.
Beyond these measures, Khairi said public investment in transport, water, digital connectivity, housing and industrial infrastructure widens the map of investible Malaysia, creating new centres of investment, employment and demand.
Meanwhile, CGS MY country head Alan Inn said global volatility strengthens the case for companies to diversify their revenue base.
“Resilience is not just a strong balance sheet. A company that relies on one market, one supply chain or one source of advantage is only as strong as the conditions around it.
“Our companies should be willing to acquire capabilities, expand across ASEAN and beyond, and build businesses whose products and revenues can travel,” he added.
CGS MY said Budget 2027 has set aside RM1 billion in financing guarantees for local companies growing through mergers and acquisitions.
It also targets five working days for processing Employment Pass applications for listed companies with MyABE status, and supports dual listings in Malaysia and Hong Kong with matching grants for listing costs.
“Regional expansion, acquisitions and serious technology build-outs need capital. Wider access to domestic and international investors gives Malaysian businesses the firepower to compete on a larger stage.
“The opportunity is not to collect incentives one by one, but to use them to transform the business,” Inn said.
Khairi also highlighted how the MY Value Up Programme, introduced by the Securities Commission Malaysia and Bursa Malaysia in 2026, could reinforce that shift.
The programme encourages listed companies to set out clearer growth strategies, targets and capital-allocation priorities, with targeted companies expected to begin publishing their MY Value Up plans in 2027.
“Budget 2027 supplies many of the enabling conditions for transformation. MY Value Up can help listed companies turn them into clear strategies, disciplined capital allocation and value that can be measured,” he said.
-- BERNAMA