KUALA LUMPUR, Sept 8 (Bernama) -- Bursa Malaysia closed almost flat on Tuesday as buying interest rotated away from index heavyweights towards smaller-cap construction stocks, with sentiment affected by geopolitical uncertainty, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 0.39 of a point to 1,714.40 from Monday’s close of 1,714.79. The benchmark index opened 1.65 points lower at 1,713.14 and moved between 1,710.44 and 1,714.50 throughout the trading session. The broader market was almost evenly balanced, with decliners leading gainers 548 to 546, while 598 counters were unchanged, 1,107 were untraded and 25 were suspended. Turnover expanded to 4.13 billion units valued at RM3.14 billion from 3.60 billion units valued at RM2.45 billion on Monday.
Germany's Social Democrats (SPD), led by Chancellor Olaf Scholz, are weighing new subsidies for electric vehicles (EVs) as a key element of their economic strategy ahead of next year’s elections. The party is proposing a revival of purchase premiums for battery-powered cars, tax rebates for electric corporate vehicles, and EV quotas for leasing providers, according to a strategy document viewed by Bloomberg.
The move comes as Germany’s auto industry faces challenges adapting to the transition toward EVs, particularly as demand weakens and competition intensifies from more affordable Chinese brands like BYD Co.. The removal of state subsidies for EV purchases in Germany and other EU countries has contributed to a downturn, with Volkswagen’s EV sales dropping 12% in Europe last quarter.
Germany’s automakers, including BMW AG, Mercedes-Benz Group AG, and Volkswagen AG, are also grappling with slower sales in China, where a real estate crisis has impacted luxury spending, and domestic EV manufacturers are gaining market share. Both BMW and Mercedes have issued warnings that this slowdown in China will affect their profits this year.
In addition to promoting EV sales, the SPD is advocating for tax incentives tied to investments in industries that support growth and protect jobs, along with income tax cuts for around 95% of taxpayers. This contrasts with the Christian Democrats' approach, as their leader, Friedrich Merz, has called for greater respect for high earners.
The SPD’s plan is designed to bolster “Made in Germany” production and shift more of the tax burden to the top 1% of income earners. As Germany’s automotive sector contends with both domestic and international challenges, the proposed EV incentives could help the industry regain momentum in the face of rising competition.
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