Malacca Securities Research has singled out 99SMART as a stock that may gain from Budget 2027, which the research house says raises the STR-SARA allocation to RM16bn from RM15bn in 2026. The call came in a market review in which the FBM KLCI rebounded even as 751 losers outpaced 331 gainers on Bursa Malaysia.
Why STR-SARA Spending Matters for 99SMART
STR-SARA is the government’s cash-aid framework, combining the Sumbangan Tunai Rahmah and Sumbangan Asas Rahmah programmes. According to Malacca Securities Research, the larger allocation could feed through to retail spending, which is the channel through which the research house expects 99SMART to benefit.
The research report does not go into detail on 99SMART’s store network or sales mix, so the investment case rests mainly on the programme’s spending trajectory. That makes the disbursement figures central to the research house’s view.
The Numbers Behind the Call
The research house noted that nearly RM11bn had been disbursed under the programme as of September. It also pointed to monthly SARA utilisation reaching 99.7%, which it read as evidence of strong take-up of available funds.
Against that backdrop, the broader market was weak. Health Care rose 0.60%, led by TOPGLOV and SUNMED, while Technology fell 2.16%, the steepest sector decline. On Wall Street, the Dow rose 1.0% and the S&P 500 gained 0.3%, while the Nasdaq edged lower.
How the Valuation Case Is Framed
The report extract provided does not disclose a rating, target price or valuation methodology for 99SMART. Malacca Securities’ broader view is that the stock is favoured within the research house’s stock-picking list, but the specific valuation basis sits outside the summary.
The research house also highlighted two other themes. A proposed CPO export-tax waiver could help plantation players such as TAANN and SWKPLNT, and Sarawak’s target of 15GW of power generation by 2035, with at least 60% from renewables, could benefit MNHLDG through grid and substation work.
Risks and Uncertainties
M+ Online’s research team said the FBM KLCI may remain mixed, citing elevated oil prices, global AI-sector volatility and persistent foreign selling. These factors could weigh on sentiment regardless of company-level catalysts.
The research house also flagged that implementation of the CPO export-tax waiver remains uncertain. Any Budget 2027 benefit for 99SMART depends on the allocation being delivered as planned.
What This Means for Retail Investors
For retail investors, the research house’s call is a view built on policy spending data, not a guarantee of earnings. The gap between the RM16bn allocation and the disbursement pace is worth tracking in future updates.
The full report, including any rating, target price and valuation detail, is available from M+ Online at mplusonline.com/research-report/detail/1475. Readers should review it directly before drawing conclusions.
Key Takeaways
- Malacca Securities Research favours 99SMART, citing Budget 2027’s STR-SARA allocation of RM16bn, up from RM15bn in 2026.
- Nearly RM11bn had been disbursed as of September, with monthly SARA utilisation at 99.7%.
- The report extract does not state a rating or target price for 99SMART.
- Technology fell 2.16% on Bursa Malaysia while Health Care rose 0.60%.
- The research house sees risks from elevated oil prices, AI-sector volatility and foreign selling.
Frequently Asked Questions
What is Malacca Securities’ call on 99SMART?
According to Malacca Securities Research, the house favours 99SMART as a stock that may benefit from Budget 2027. The report extract does not include a rating or target price, so the full report from M+ Online should be consulted for those details.
Why does Budget 2027 matter for 99SMART?
The research house says the STR-SARA allocation rises to RM16bn from RM15bn in 2026. It also noted that nearly RM11bn had been disbursed as of September, which it views as strong utilisation.
Is the proposed CPO export-tax waiver certain?
Malacca Securities Research said implementation of the proposed CPO export-tax waiver remains uncertain. The waiver could help plantation names such as TAANN and SWKPLNT if it proceeds.
📊 On AI Stock Terminal: 99SMART quarterly results · 99SMART announcements
Source & Attribution
This article summarises a research report published by Malacca Securities Sdn Bhd (M+ Online) on 21 October 2026. All ratings, target prices and forecasts belong to Malacca Securities Research, not to the author of this blog.
Read the original report: M+ Online Research Report | View full PDF
Disclaimer: This article is for informational and educational purposes only and does not constitute financial advice or a recommendation to buy or sell any security. Ratings and target prices cited are those of Malacca Securities Research and are subject to change. Always do your own research before making investment decisions.
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