13MP Unlikely to Boost Markets Near-Term: Analysts

According to CGS International, while the 13th Malaysia Plan (13MP) outlines several positive long-term structural reforms, it is unlikely to generate near-term excitement in financial markets. The research house maintains its end-2025 KLCI target at 1,670. Continued high development expenditure (DE) is expected to benefit the construction sector, while proposed income-related measures—such as expanded cash aid, higher minimum wages for graduates and semi-skilled workers, and a raised retirement age—are seen as supportive for consumer-related sectors. In property, revisions to the rent-to-own scheme may modestly boost demand, but the proposed build-then-sell model could hurt developers. CGS also noted positives in energy, including more ambitious renewable energy targets and potential nuclear inclusion. However, the push to reduce foreign labour reliance to 10% may weigh on labour-intensive sectors like plantations, gloves, and manufacturing. The introduction of a “pro-health tax” on alcoholic beverages could also pose headwinds for brewers. Tech policies remain consistent with existing goals to upskill Malaysia’s semiconductor industry.