Key Sectors That Will Benefit From Budget 2025

Experts from Moomoo Malaysia shared their thoughts regarding the recent Budget 2025 announcement.

According to the commentary, Budget 2025 will put in place the groundwork for growth in strategic sectors like tourism, logistics, real estate, and clean energy.

Tourism

The tourism sector will be seeing a major boost with funding for the Visit Malaysia Year 2026. This sector will be receiving an increase from RM350 million to RM550 million. These funds will be used mainly for infrastructure upgrades and promotional efforts aimed at boosting both international and domestic travel

Logistics

For Budget 2025, smart logistics companies can expect to receive a 60% investment tax exemption for 5 years. E-commerce firms and logistics providers may bewell positioned to see improvements to their operational margins, especially as infrastructure upgrades continue to progress

Real estate

The budget’s focus for the real estate sector is the creation of affordable housing through the use of tax reliefs and support for first-time homebuyers through the Syarikat Jaminan Kredit Perumahan (SJKP) scheme​. Increase in homebuyer activities and green building projects are also likely to benefit real estate developers and property-focused REITs.

Clean energy

The National Energy Transition Roadmap (NETR), which was launched to help with Malaysia’s energy transition, will be funded with RM300m, as announced in Budget 2025. This is a 200% increase compared to the previous year.

This shows that clean energy remains a priority, with Budget 2025 allocating funds for renewable energy projects and incentives for electric vehicles (EVs). Solar companies, EV infrastructure providers, and green technology firms continue to be well-positioned to capture significant value as sustainability investments accelerate.

Exports

A fund of RM750 million will be provided by EXIM Bank under Skim Insentif Pemampanan Pengeksport. This is to encourage local exporters to expand their operations into overseas markets. RM40 million has also been allocated under MATRADE as a reimbursement grant to assist Malaysian exporters on the international stage.

This will not only promote Malaysian products, but will also help all manner of businesses to export and expand their products overseas, especially MSMEs.

Opportunities in key growth areas

As for 2025 outlook by sector, Moomoo Malaysia has earmarked clean energy and logistics for medium to long-term growth potential. Below is their sector outlook for 2025.

While the market sentiment has been cautiously optimistic after the government budget announcement, challenges remain. Inflationary pressures and geopolitical tensions could weigh on export-driven sectors like logistics and manufacturing. Meanwhile the real estate market may be affected by rising interest rates.  Investors should remain vigilant and diversified in their strategies.