Malaysia's Auto Sector Seen Supported by Faster EV Adoption

Dow Jones
07/10

0235 GMT - Malaysia's auto sector is expected to be supported by a speedier pace of electric vehicles adoption in 2H, led by Proton's eMas models, says Daniel Wong at Hong Leong IB in a note. National carmakers, especially Proton and Perodua, are expected to benefit from Budget 2026 incentives and tighter rules on imported EVs, the analyst says. The ringgit is expected to strengthen versus the U.S. dollar toward the end of 2026, lowering import and component costs and supporting margins for local automakers, he adds. Hong Leong maintains an overweight rating on Malaysia's automotive sector given its resilient earnings and attractive dividend yields, and pegs MBM Resources and Sime Darby as top picks. (yingxian.wong@wsj.com)

 

(END) Dow Jones Newswires

July 09, 2026 22:35 ET (02:35 GMT)

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