Technology Sector Rebounds, Driven by Global Chip Demand Recovery

February 5, 2026
Sector Analysis
Star Biz

Malaysia's technology sector saw a strong rebound today, with the index rising 1.8%, buoyed by expectations of a global semiconductor demand recovery. Key tech stocks like Inari Amertron and MPI recorded significant gains. Analysts are optimistic about the sector's long-term outlook, anticipating sustained growth in 2026.

On February 5, 2026, Malaysia's technology sector delivered a stellar performance, with the FBM Technology Index climbing 1.8%, making it one of the best-performing sectors of the day. This surge was primarily driven by positive signals from the global semiconductor industry, particularly the anticipated sustained recovery in chip demand fueled by advancements in artificial intelligence and 5G technologies. Key technology stocks such as Inari Amertron Bhd gained 5 sen to RM3.15, while Malaysian Pacific Industries Bhd (MPI) rose 12 sen to RM30.20. Analysts believe that despite some recent correction pressures, the sector's long-term growth potential remains substantial. As supply chains gradually stabilize and new technologies are adopted, Malaysia, as a hub for semiconductor assembly and testing, is poised to continue benefiting.
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