Tech Stocks Face Adjustment Pressure Amid Global Chip Demand Slowdown

March 16, 2026
Sector Analysis
The Edge Markets

Malaysia's technology sector declined 1.5% today, impacted by a slowdown in global chip demand and a correction in US tech stocks. Local semiconductor-related companies like Inari Amertron and Malaysian Pacific Industries saw their share prices under pressure.

Malaysia's technology sector performed poorly today, declining by 1.5% overall, making it one of the worst-performing sectors. This drop was primarily influenced by concerns over a slowdown in global semiconductor industry demand and a correction in US technology stocks. Major local tech stocks such as Inari Amertron fell by 2.1%, and Malaysian Pacific Industries (MPI) dropped by 1.8%. Analysts noted that while the long-term outlook remains optimistic, short-term global chip inventory adjustments and macroeconomic uncertainties are putting pressure on tech stocks. Investors are re-evaluating the valuations of technology companies and closely monitoring order trends for the coming quarters. Some analysts advise investors to adopt a cautious approach and await signs of market stabilization.
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