Stable outlook for auto sector on wage hike

Kenanga Research projects a total industry volume of 740,000 units in line with the forecast by the Malaysia Automotive Association.

PETALING JAYA: It is likely to be business as usual for the affordable segment of the automotive sector as the Bottom 40 group will be spared the impact of the impending fuel subsidy rationalisation, says Kenanga Research.

According to the research firm, the B40 group could potentially benefit from the introduction of the progressive wage model. The 13% pay rise for most civil servants in December 2024 will also partially restore their spending power eroded by high inflation.