Malaysia's Budget 2027 Likely to Focus on Localization of Auto Supply Chain -- Market Talk

0204 GMT - Malaysia's Budget 2027 is expected to offer policy support to favor domestic manufacturing and strengthen the automotive supply chain, says Affin Hwang IB analyst Afifah Ishak in a note. This should benefit companies with meaningful manufacturing footprints in Malaysia, including selected auto-part suppliers, while companies with limited local value-added activities could face pressure, she says. The shift could benefit auto assembler Inokom, owned by Sime Darby and Bermaz Auto, if stricter requirements encourage vehicle manufacturers to move from imports to local assembly. Malaysia's automotive supply chain remains concentrated in traditional components, while capabilities in higher-value areas such as EV batteries and electric drivetrains are still at an early stage of development, she notes. Affin Hwang maintains a neutral rating on Malaysia's auto and auto-parts sector. (yingxian.wong@wsj.com) (END) Dow Jones Newswires October 06, 2026 22:04 ET (02:04 GMT) Copyright (c) 2026 Dow Jones & Company, Inc. The statements in this document shall not be considered as an objective or independent explanation of the matters. Please note that this document (a) has not been pr