Kuala Lumpur:Greater tax certainty and enhanced support for small- and medium-cap companies are suggested measures to boost Malaysia's capital market in the upcoming Budget 2027.

According to BERNAMA News Agency, MBSB Investment Bank Bhd's head of research, Imran Yassin Md Yusof, emphasized the importance of tax certainty for companies. He noted that unexpected tax measures, such as the Cukai Makmur implemented in 2022, can negatively impact corporate earnings in the short term.

Imran Yassin also highlighted the need for Budget 2027 to support small- and medium-cap companies in adapting to new economic growth drivers, such as automation and innovative business models. This preparation is essential for these companies to advance in the evolving economy.

He further suggested that the budget should address potential economic challenges next year, providing a stimulus for the capital market. The budget is expected to be mildly expansionary, with increased spending on key economic priorities.

Additionally, Imran Yassin urged the government to maintain its fiscal consolidation efforts while ensuring economic and private sector support. He advocated for greater clarity in the tax system to attract foreign investment.