Kuala Lumpur:Budget 2027 is expected to focus on a potentially higher allocation for gross development expenditure in the transportation subsector, as indicated by RHB Investment Bank Bhd (RHB IB).

According to BERNAMA News Agency, the investment bank noted that this projection is supported by the trend of higher allocations for the transportation subsector in previous budgets. In the 2026 budget, approximately RM17.6 billion, or 21.6% of the RM81 billion gross development expenditure, was allocated to the transport subsector, compared to the 20.5% allocation in the revised estimate for 2025.

RHB IB also anticipates that Malaysia's development expenditure will rise in the second half of 2026, following historical patterns. In the first half of 2026, RM32.5 billion of the RM81 billion initially budgeted for gross development expenditure had been spent as net development expenditure.

This increase in expenditure may lead to job opportunities for listed construction companies towards the end of 2026. Potential projects include Segment 2 of the Penang Light Rail Transit project and new government hospitals such as the Bandar Enstek Hospital in Negeri Sembilan.

The 2027 Budget is scheduled to be presented by Prime Minister Datuk Seri Anwar Ibrahim in the Dewan Rakyat on Friday at 3:30 pm.

RHB IB also commented that the expected revision to the minimum wage next year is unlikely to significantly affect contractors. According to data from the Construction Industry Development Board, the current minimum daily wage for a general worker in Selangor is RM100, leading to a monthly salary of approximately RM2,400 for a six-day workweek.