Malaysia's technology sector experienced a 1.8% decline today, impacted by a slowdown in global semiconductor demand. Despite this short-term correction, analysts maintain an optimistic long-term growth outlook, citing continued digitalization trends and government support for high-tech industries. Investors are advised to look for entry points during dips, focusing on companies with strong fundamentals and innovative product pipelines.
On February 5, 2026, Malaysia's technology sector index fell by 1.8%, making it one of the worst-performing sectors of the day. This decline was primarily due to concerns over a slowdown in global semiconductor demand and a correction in US technology stocks. Major tech companies like ASM Pacific Technology and Frontken Corporation saw their share prices drop. Despite this, analysts generally view this as a normal market correction following a period of rapid gains. In the long term, with global digital transformation, 5G technology adoption, and the Malaysian government's continued investment in high-tech manufacturing, the technology sector's growth potential remains significant. Investors should focus on companies with innovative capabilities and strong financial positions to capitalize on future rebound opportunities.
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