Accra:Budget 2027 reinforces the country's commitment to sustainability, focusing on decarbonization, climate resilience, and social inclusion, according to Kenanga Investment Bank Bhd (Kenanga IB).
According to BERNAMA News Agency, Kenanga IB expressed encouragement over increased conservation funding, which supports nature-positive activities. The budget includes measures such as raising the Ecological Fiscal Transfer (EFT) allocation to RM270 million for state-level conservation, with RM65 million directed to community biodiversity rangers. Additionally, nearly RM320 million is designated for nationwide slope, drainage, and ditch upgrades, and RM260 million is allocated to the National Disaster Management Agency (NADMA). A significant RM2.5 billion Non-Revenue Water programme aims to replace 1,900 km of aging pipes, while RM100 million is set aside for retention ponds and river maintenance to mitigate flood risks in the Klang Valley. The palm oil industry cess collections will contribute RM15 million for conservation efforts in habitats of endangered species.
Kenanga IB noted that despite the absence of a new carbon-tax announcement in Budget 2027, ongoing complexities in implementation, such as interactions with fossil-fuel subsidy rationalization and balancing decarbonization objectives with industrial competitiveness, are likely considerations. Potential beneficiaries of these measures include renewable energy and clean technology firms, infrastructure providers, and various sectors like rail, public transport, and environmental services. Consumer goods and value-oriented retailers may benefit from increased purchasing power due to wage hikes, although sectors like manufacturing and hospitality could experience higher payroll costs affecting profit margins.
The investment bank highlighted that the identified opportunities in various sectors do not guarantee increased earnings, as growth will depend on factors like tender awards, project implementation, and private-sector participation. The impact of minimum wage increases is expected to vary across different sectors and business models.