Kuala lumpur: MBSB Investment Bank Bhd anticipates that Visit Malaysia Year 2026 (VMY 2026) will significantly drive Malaysia’s economy and equities market next year, with several related sectors expected to benefit.
According to BERNAMA News Agency, the bank has identified sectors such as transportation, hospitality, healthcare, and consumer markets as likely beneficiaries. These include airlines, airports, mass transit operators, hotels, resorts, medical tourism providers, and retail outlets like food and beverage and convenience stores.
The initiative, themed ‘Surreal Experiences’, targets attracting 47 million visitors, generating RM329 billion in tourism receipts. MBSB believes that Malaysia is strategically positioned to meet the rising demand, making VMY 2026 a catalyst for economic growth.
The bank also foresees continued growth in Artificial Intelligence (AI) investments through 2026. Data centres (DCs) are expected to benefit indirectly, as AI deployment has not yet reached its peak. The increase in DCs has positively impacted the construction sector, with expectations of it remaining a growth driver in 2026 due to sustained demand.
MBSB’s discussions with contractors indicate active tendering for DC projects, with a steady pipeline of work. This demand is projected to extend into utilities and renewable energy (RE), supported by commercial-sector demand and increased DC loads. This provides long-term investment visibility in generation, transmission, and distribution.
The bank predicts a busy year for renewable energy in 2026, especially for solar engineering, procurement, construction, and commissioning (EPCC) players, with ongoing projects like the fifth Large Scale Solar (LSS5, 2GW) and LSS5+ (2GW). These projects could generate up to RM5.9 billion in EPCC opportunities, with contracts potentially awarded in the first quarter of 2026.
Externally, MBSB forecasts that the US Federal Reserve will continue its monetary easing cycle in 2026. Historically, such periods have bolstered equity market performance. Additionally, clearer US trade policies are expected to stabilize investment assessments.
Overall, the bank is optimistic about the outlook for 2026, forecasting the benchmark FTSE Bursa Malaysia KLCI to reach a baseline target of 1,750.