Technology Sector Under Pressure as Global Chip Demand Slows

March 14, 2026
Sector Analysis
Bursa Malaysia

Malaysia's technology sector fell 1.8% on Friday, impacted by a slowdown in the global semiconductor industry and weak performance of US tech stocks. Investors are cautious about the outlook for chip demand in the coming months, putting pressure on local tech counters like Inari Amertron and Malaysian Pacific Industries.

Malaysia's technology sector experienced a weak performance in Friday's trading, declining 1.8% overall and emerging as one of the day's worst-performing sectors. This downturn was primarily attributed to signs of a slowdown in the global semiconductor industry and a general pullback in US tech stocks. Investors are maintaining a cautious outlook regarding chip demand in the coming months, concerned that inventory adjustments may persist. Major local tech counters, such as Inari Amertron, fell 2.5% to RM3.15, while Malaysian Pacific Industries also dropped 1.9% to RM35.80. Analysts anticipate that the technology sector may continue to face challenges until global economic uncertainties subside.
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