Technology Sector Faces Adjustment Pressure Amid Global Chip Demand Concerns

February 24, 2026
Sector Analysis
Bursa Malaysia

Malaysian technology stocks generally fell today, affected by concerns over slowing global chip demand and a pullback in US tech stocks. Local semiconductor-related companies like Inari Amertron and Malaysian Pacific Industries led the declines.

Malaysia's technology sector faced widespread pressure on Tuesday, with the Technology Index falling by 1.8%, primarily due to an uncertain global semiconductor industry outlook and an overnight pullback in US tech stocks. Growing concerns among investors about a potential slowdown in global chip demand led to declines in local tech giants. Among them, Inari Amertron fell 3.5% to close at RM3.20, and Malaysian Pacific Industries (MPI) dropped 2.8% to RM38.50. Analysts noted that while the long-term growth trend remains intact, technology stocks might face earnings adjustments and valuation pressure in the short term. Some investors chose to take profits, awaiting clearer market signals. The technology sector is expected to continue to be influenced by international market sentiment and the movement of the US dollar.
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