CIMB Positive On Govt Stimulus, Spur Consumer Sentiment
The measures announced by Prime Minister Datuk Seri Anwar Ibrahim include:
A one-off RM100 e-credit for all Malaysian citizens aged 18 and above, benefiting an estimated 22 million individuals. The credit, which is part of the Sumbangan Asas Rahmah (SARA) programme, will be redeemable from August 31 to December 31, 2025, at over 4,100 designated retail outlets, including Mydin, Lotus's, Econsave, and 99 Speedmart.
The subsidised price of RON95 petrol will be reduced from RM2.50/litre to RM1.99/litre for all Malaysians, impacting approximately 18 million eligible vehicles. The government has stated that an update on the RON95 subsidies rationalisation plan will be announced by the end of September.
September 15, 2025, has been declared a public holiday to encourage domestic travel and boost the services and tourism sectors.
A RM500 million allocation will be used to cap toll hikes at 10 highways throughout 2025, providing relief to commuters, particularly in the Klang Valley and Putrajaya.
The budget for this initiative has been doubled to RM600 million for 2025.
CIMB Securities views the stimulus as 'incrementally positive,' reinforcing near-term consumer spending, especially on essential goods and value-based retail. The report highlights several companies that are well-positioned to benefit:
99 Speedmart is a key beneficiary, with an estimated 900 to 1,000 of its outlets participating in the SARA programme, allowing it to capture a significant share of the stimulus-driven spending.
Eco-Shop Marketing is also well-placed, with over half of its 349 stores part of the SARA initiative.
Mynews, with 30 of its Supervalue outlets participating in the broader Rahmah Madani programme, is expected to see a boost in footfall and sales.
Food and beverage (F&B) manufacturers like Nestlé, F&N, QL Resources, and Farm Fresh are expected to see stronger demand for basic food and beverage products, many of which are eligible for purchase with the e-credit.
Despite the positive short-term outlook, CIMB Securities is maintaining its Neutral call on the overall consumer sector. The firm believes current valuations are fair, as the positive impact of the stimulus is balanced by ongoing headwinds. These include soft consumer sentiment, higher sales tax on discretionary goods, the impact of boycott activities on some companies, and cost pressures from the expanded Sales and Service Tax on rental.
The report's top picks within the consumer sector are 99 Speedmart, Farm Fresh, and Padini, citing their defensive sales mix, growth potential, and attractive valuations. Related
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