Technology Sector Under Pressure Amid Uncertain Semiconductor Demand

February 28, 2026
Sector Analysis
Bursa Malaysia

Malaysia's technology sector fell 1.5% on Friday, pressured by global semiconductor industry uncertainties and a pullback in US tech stocks. Local tech companies like Inari Amertron and Vitrox Corp saw their share prices decline.

Malaysia's technology sector faced pressure in Friday's trading, declining by 1.5% overall, making it one of the day's weakest performers. The primary reasons were uncertainties surrounding the pace of recovery in the global semiconductor industry and a pullback in US technology stocks after their recent strong rally. Major local tech counters like Inari Amertron fell 2.1% to RM3.15, while Vitrox Corp also slid 1.8% to RM6.50. Although the long-term proliferation of AI and 5G technologies is expected to continue driving semiconductor demand, short-term concerns persist regarding high inventories and weak consumer electronics demand. Analysts advise investors to remain cautious on the technology sector and monitor for signs of fundamental improvement in the industry.
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