Kuala lumpur: Domestic catalysts, including the 13th Malaysia Plan (13MP), Visit Malaysia 2026 (VM2026), and a strengthening ringgit, are anticipated to boost market performance in the first quarter of 2026.
According to BERNAMA News Agency, this follows a volatile 2025 marked by 'tariff tantrums' and subsidy rationalisation. The Malaysian market is expected to see clearer policy direction after United States President Donald Trump imposed a 19 percent reciprocal tariff on Malaysian products, as noted by Malacca Securities Sdn Bhd in a research note.
Malacca Securities highlighted that the strengthening ringgit is expected to influence market direction, with predictions of the currency trading between RM3.90 and RM4.10 against the US dollar in the coming months. This is attributed to anticipated US rate cuts, which may weaken the US dollar and offer some respite for Malaysia's domestic-driven sectors such as consumer, real estate investment trusts (REITs), and banking.
The stockbroking firm emphasized that under VM2026, Malaysia's tourism sector is projected to be a significant economic driver, with the government targeting 47 million international arrivals and RM329 billion in tourism receipts. This initiative is expected to elevate Malaysia's status as a premier, sustainable, and high-value global destination in Southeast Asia, potentially boosting sentiment across the aviation, hospitality, REITs, healthcare, and consumer sectors.
In the healthcare sector, Malacca Securities maintained a positive outlook, citing Malaysia's ageing population as a factor driving demand for healthcare services, retirement solutions, and senior-friendly offerings. Healthcare providers, pharmaceutical firms, and wellness-related businesses are seen as long-term opportunities in this environment.
The firm also pointed out that strategic partnerships between ARM Holdings and Malaysia, along with the YTL-Nvidia collaboration, have bolstered the country's position in high-value semiconductor and artificial intelligence manufacturing. This momentum is expected to foster positive sentiment in the technology sector, particularly benefiting electronics manufacturing services players in Johor. Additionally, the Johor-Singapore Special Economic Zone is anticipated to be a key catalyst for long-term economic growth over the coming decade.