6 days ago
- Business
- New Straits Times
Tech sector set for rebound on policy boost, US tariff cut
KUALA LUMPUR: The local technology sector is poised for renewed investor interest as sentiment improves, buoyed by supportive policies under the 13th Malaysia Plan (13MP) and the United States (US)-Malaysia tariff agreement.
Public Investment Bank Bhd (PublicInvest) said under the 13MP, the government aims to transform Malaysia into an inclusive and sustainable artificial intelligence (AI) nation by 2030 and position the country as a regional hub for digital technology manufacturing.
It said the cornerstone of the plan is to nearly double the export value of electrical and electronic products to RM1tln by 2030, supported by the implementation of the High-Value High-Tech Semiconductor Industry Flagship Project.
"As part of the National Semiconductor Strategy, the government has allocated RM2 billion—half of which will go toward the deal to expedite chip design development, while the remaining half will serve as matching grants for local research and development initiatives.
"Under the strategic plan, the government aims to secure at least RM500 billion in domestic and foreign investments as well as the training and upskilling of 60,000 high skilled engineers to support the semiconductor industry," it said in a note.
Meanwhile, PublicInvest said sentiment is likely to be further boosted by the reduction in US-Malaysia tariff, easing concerns for the prospects of local technology companies with substantial exposure to the US market.
This includes SKP Resources Bhd, VS Industry Bhd, Greatech Technology Bhd and Inari Amertron Bhd, the firm said.
On a more positive note, PublicInvest said the 19 per cent tariff rate for Malaysia is even lower than Taiwan's 20 per cent.
"However, we anticipate a mixed set of results this month, as the sector faces headwinds from a softer US dollar and frontloading activities," it said, maintaining an "Overweight" rating on the sector.
