Budget 2026 blends near-term assurance with a sharper push for resilience. Targeted household and business support should underpin mass-market consumption and keep credit conditions steady, while the Government flags readiness to spend more on defence if needed and to deepen cyber protection.
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Budget 2026 is equity-supportive.
Domestic consumption and essentials benefit immediately as sizeable household transfers (CDC vouchers, U-Save, cash and child credits) alongside wage support should lift mass-market spending, favouring Sheng Siong and DFI Retail through resilient staples demand and voucher-enabled traffic.
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AI and advanced manufacturing is a close third: The National AI Council, One-North AI park, AI Missions, and Research, Innovation and Enterprise 2030 (RIE2030) funding point to a sustained R&D and capex cycle benefiting Frencken Group, UMS Integration, and Venture Corporation.
The energy transition sector remains structurally positive via carbon pricing, importing low-carbon electricity from the region, pursuing longer-dated diversification options, e.g. hydrogen and EV infrastructure, with ComfortDelGro, Keppel, Keppel Infrastructure Trust and Sembcorp as key proxies.
The equities-market reboot should benefit SGX most directly through a stronger IPO/fund-raising pipeline and higher liquidity/turnover, while banks (led by DBS, then OCBC Bank and United Overseas Bank (UOB)) gain via larger wealth and investment banking fee pools plus firmer trade finance and FX flows from enterprise internationalisation.
Property developers benefit mainly from no new cooling measures; within REITs, uplift is targeted to retail (CapitaLand Integrated Commercial Trust (CICT) and Frasers Centrepoint Trust (FCT)) and industrial/business park (CapitaLand Ascendas REIT (CLAR)) on One-North spillovers.
Banks: Net positive but unlikely to be too significant
Budget measures and sector impact:
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Above is an excerpt from a report by RHB Securities Research. Clients of RHB may be the first to access the full PDF report @ https://www.rhbtradesmart.com/.
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