KUALA LUMPUR: Corporate Malaysia should leverage the 2027 Budget to accelerate investment, improve productivity and build more sustainable and internationally competitive businesses amid rising global uncertainties.
CGS International Securities Malaysia Sdn Bhd chief executive officer Khairi Shahrin Arief Baki said the fifth Madani Budget offered businesses opportunities to strengthen resilience through technology adoption, workforce development, sustainability and increased productive capacity.
Khairi said escalating geopolitical tensions in West Asia, disruptions to energy and shipping, trade tensions and climate risks had made resilience a priority for Malaysia and its corporate sector.
"The budget gives businesses more tools to invest in technology, skills, sustainability and productive capacity before the next test arrives.
"The government can set the conditions, clear the barriers and lay the foundations. Whether those foundations translate into stronger businesses, better jobs and higher incomes is ultimately up to companies," he said.
CGS International said among the measures supporting corporate transformation are the extension of accelerated capital allowances for locally produced plant and machinery, information and communications technology equipment and software until the end of 2030.
The budget also provides investment tax allowances of up to 100 per cent for qualifying green technology projects and assets, alongside support for micro, small and medium enterprises (MSMEs) adopting artificial intelligence and automation.
He said the proposed increase in the minimum wage from RM1,700 to RM2,000 a month from June 2027, with exemptions for MSMEs recording annual sales below RM50 million, is expected to reinforce the need for businesses to move towards higher-productivity operations.
"Productivity without better wages leaves households outside the gains of growth. Wages without productivity cannot hold. Malaysia needs both, rising together," he said.
On sustainability, Khairi said companies that invested early in decarbonisation and operational efficiency would be better positioned to manage the costs and implications of the country's evolving carbon-pricing framework.
"Carbon pricing is becoming part of Malaysia's business landscape. Companies can treat it as a compliance issue, or as a reason to become more efficient and more resilient. Sustainability done well can be a source of productivity, resilience and long-term value," he said.
Khairi also highlighted how the MY Value Up Programme, introduced by the Securities Commission and Bursa Malaysia in 2026, could reinforce that shift.
It encourages listed companies to set out clearer growth strategies, targets and capital-allocation priorities, and targeted companies are expected to begin publishing their MY Value Up plans in 2027.
"The 2027 Budget supplies many of the enabling conditions for transformation. MY Value Up can help listed companies turn them into clear strategies, disciplined capital allocation and value that can be measured," he added.
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