The electronics manufacturing services (EMS) sector in Malaysia has seen mixed performance in 2024 despite being part of the broader tech upcycle, with rising costs, inflation, and supply chain disruptions offsetting growth from increased global demand and outsourcing trends. Key EMS Performances Winners : SKP Resources Bhd (+76% YTD) V.S. Industry Bhd (+47% YTD) NationGate Holdings Bhd (+51% YTD) P.I.E. Industrial Bhd (+29% YTD) Strugglers : ATA IMS Bhd (-8% YTD) JHM Consolidation Bhd (-36% YTD) Growth Drivers and Challenges Diversification Opportunities : The China+1 and Taiwan+1 strategies have positioned Malaysian EMS players to gain market share. However, reliance on major customers, such as Dyson, continues to be a concern. Cost Pressures : High inflation and production costs have affected profit margins. Company Highlights SKP Resources : Recorded a 27% y-o-y net profit increase , benefiting from a recovery in consumer demand. V.S. Indust...
Malaysia’s consumer and construction stocks are poised to benefit from Budget 2025, as Prime Minister Datuk Seri Anwar Ibrahim is expected to introduce measures aimed at lowering the cost of living and unveiling infrastructure projects. As both Prime Minister and Finance Minister, Anwar will likely announce targeted cash transfers, civil servant salary hikes, and potential revisions to the minimum wage to boost disposable incomes, supporting retailers like AEON Co and Padini Holdings.
In the construction sector, analysts expect the budget to include new projects such as the Mass Rapid Transit Line 3 and Pan Borneo Highway, with companies like Gamuda, Sunway Construction, and IJM Corp set to benefit. There could also be updates on the Johor-Singapore High-Speed Rail and cross-border economic zones, reigniting interest in the sector.
The government’s commitment to growing semiconductor industries may lead to support measures for data center developers like YTL Power International and tech firms such as Inari Amertron and Unisem.
For the property sector, more initiatives to aid first-time homebuyers and affordable housing schemes are expected, benefiting developers like Lagenda Properties and Mah Sing Group.
On the currency front, traders will be monitoring the budget for cues that may spark a ringgit rebound, especially if the government successfully balances economic growth with petrol subsidy cuts. In terms of government bonds, analysts predict a modest impact, with the fiscal deficit expected to fall to 3.9% in 2025, and a slight reduction in net bond issuance.
Source: theedgemalaysia
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