FX.co ★ Malaysian Shares Rise Further After 2027 Budget Release

Bursa Malaysia’s KLCI climbed 0.4% to 1,614 in Monday morning trade, extending last week’s gains after the government unveiled its 2027 budget. Kuala Lumpur has proposed MYR 460 billion in spending, expanding welfare assistance and tax relief while maintaining fuel subsidies to ease pressure on households.

Officials forecast slower economic growth of 4.2%–5.2% next year and inflation of 1.8%–2.8%, but expect the fiscal deficit to narrow to 3.3% of GDP from a revised 3.6%. Recent data showed an acceleration in August industrial production and retail sales, alongside a marginal decline in unemployment.

U.S. stock futures also advanced after President Trump said he is considering joining Saudi Arabia in retaliatory action against Tehran-backed Houthi forces following a deadly strike on Riyadh’s main airport.

On the local bourse, transport, communication, and financial stocks led the advance, while consumer services, retail, and healthcare counters declined. Lenders were broadly higher, including Maybank (up 1.2%) and CIMB (up 1.0%). Other notable gainers included Sunway (2.0%), MISC (1.6%), and Axiata (1.2%).