AUTOMOTIVE industry players have put forward proposals to strengthen electric vehicle (EV) adoption, attract investment and deepen domestic value creation as the Government gathers industry input for Budget 2027.
The proposals were raised during a Budget 2027 engagement session led by Finance Minister II Datuk Seri Amir Hamzah Azizan with local and international automotive industry players at the Automotive Hi-Tech Valley (AHTV) in Tanjong Malim, Perak.
The session was organised by the Ministry of Finance (MOF) in collaboration with the Northern Corridor Implementation Authority (NCIA), with DRB-HICOM Bhd as host.
Amir said the automotive industry was an important catalyst for economic growth, including efforts to increase its contribution to gross domestic product (GDP) and meet the country’s EV adoption targets.
“The empowerment of the high-technology automotive sector can not only generate high-value employment opportunities and strengthen the country’s export competitiveness, but also serve as a catalyst for technology transfer and the development of local human capital.
“The proposals and feedback from industry players today are highly valuable in examining improvements to policies, incentives and fiscal measures under Budget 2027,” he said.
The engagement focused on identifying fiscal incentives to boost productivity, foreign direct investment (FDI) and regional competitiveness while supporting national targets for EV and next-generation vehicle (NxGV) ownership.
Industry needs for digitalisation, research and development, innovation, and the development of the EV and new energy vehicle (NEV) ecosystem were also discussed.
Another key focus was strengthening the domestic supply chain by integrating local vendors and suppliers more effectively into global value chains, with the aim of increasing domestic value-added and building local capabilities in high-value technology and manufacturing.
The industry also highlighted the need to develop a highly skilled workforce through reskilling and upskilling to support the future engineering and manufacturing ecosystem.
The government expects greater productivity and technology adoption in the automotive sector to generate wider economic benefits through high-skilled job creation, increased business activity, stronger exports and higher domestic value-added, while potentially strengthening the country’s revenue base over the longer term.
The push is aligned with the New Industrial Master Plan 2030 (NIMP 2030) and National Automotive Policy 2020 (NAP 2020), which aim to position Malaysia as an ASEAN production and export hub for NxGVs and environmentally friendly vehicles.
Amir said the Budget 2027 process was being carried out through an inclusive engagement approach involving ministries, state-level Budget Tours, focus group discussions, state governments, industry, financial institutions, businesses and communities.
He said the Government was also adopting an Outcome Based Budgeting approach to ensure public spending delivered measurable results.
“This approach aims to ensure that every ringgit spent can solve the people’s problems, create economic opportunities and generate a tangible impact.
“This step is crucial to ensure that Government allocations are managed efficiently, their performance is measured transparently, and the intended outcomes are delivered to the people,” he added.
Input gathered during the Perak visit and engagement sessions nationwide will be considered in finalising Budget 2027, with the Government seeking to ensure development remains inclusive, balanced and aligned with the aspirations of the MADANI Economy. - September 11, 2026
