Technology Sector Leads Gains Amid Chip Demand Recovery

February 5, 2026
Sector Analysis
Bursa Malaysia

Malaysia's technology sector performed strongly today, with the FBM Technology Index rising 1.8%, buoyed by optimism over a global chip demand recovery. Semiconductor-related companies like Inari Amertron and Malaysian Pacific Industries (MPI) saw significant share price gains. This positive trend reflects improving industry fundamentals and robust order books for local players.

On February 5, 2026, Malaysia's technology sector emerged as the top performer on Bursa Malaysia, with the FBM Technology Index climbing 1.8% to close at 68.50 points. This robust performance was primarily attributed to optimistic market expectations regarding a global recovery in semiconductor demand. Several local semiconductor-related companies saw significant share price gains, with Inari Amertron Bhd jumping 3.5% to RM3.55, and Malaysian Pacific Industries Bhd (MPI) rising 2.8% to RM30.20. Analysts highlighted that with the widespread adoption of Artificial Intelligence (AI) and 5G technologies, chip demand is projected to continue growing, benefiting Malaysian companies that are crucial links in the global semiconductor supply chain. Investor confidence in the sector is strengthening, with more positive earnings reports anticipated in the coming quarters.
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