Kuala lumpur: CIMB Securities Sdn Bhd has maintained its positive view on the FTSE Bursa Malaysia KLCI for 2026, with an end-2026 target of 1,772 points following Prime Minister Datuk Seri Anwar Ibrahim's 2026 New Year message in which he outlined a reform-led and pro-growth agenda.

According to BERNAMA News Agency, the investment bank noted that the key measures proposed by Anwar, such as the planned tabling of four institutional reform bills at the upcoming January parliamentary sitting, should help address governance weaknesses and are supportive of overall market sentiment. Additionally, tax relief and compliance-easing measures for small and medium enterprises (SMEs) and businesses are expected to help reduce operating costs.

The reduction in service tax on rentals to six percent from eight percent for SMEs is expected to be beneficial for real estate investment trusts, as it lowers the effective tax burden on rental income. Continued targeted cost-of-living assistance is anticipated to support consumer spending, while the potential relaxation of import conditions for building materials could negatively impact building materials producers but positively affect construction players due to potential margin support.

The targeted assistance includes the Sumbangan Asas Rahmah (SARA) and Sumbangan Tunai Rahmah (STR) programmes' staged payments, a second one-off RM100 SARA payment to all Malaysians on February 9, and an expanded Jualan Rahmah Madani programme.