KUALA LUMPUR, Sept 8 (Bernama) -- Bursa Malaysia closed almost flat on Tuesday as buying interest rotated away from index heavyweights towards smaller-cap construction stocks, with sentiment affected by geopolitical uncertainty, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 0.39 of a point to 1,714.40 from Monday’s close of 1,714.79. The benchmark index opened 1.65 points lower at 1,713.14 and moved between 1,710.44 and 1,714.50 throughout the trading session. The broader market was almost evenly balanced, with decliners leading gainers 548 to 546, while 598 counters were unchanged, 1,107 were untraded and 25 were suspended. Turnover expanded to 4.13 billion units valued at RM3.14 billion from 3.60 billion units valued at RM2.45 billion on Monday.
Potential Tariff Relief for Malaysia’s Semiconductor Sector
Malaysia may avoid the full brunt of the U.S.’s proposed 100% tariff on imported semiconductors, according to CIMB Treasury & Markets Research.
Economists Michelle Chia and Azri Azhar said a substantial share of Malaysia’s chip exports come from U.S. firms operating locally, which may qualify for exemptions under U.S. President Trump’s relocation-focused tariff policy.
Export Breakdown
Investment Minister Tengku Zafrul revealed that 65% of Malaysia’s chip exports to the U.S. originate from U.S. companies based in Malaysia. Analysts believe a portion of the remaining 35% — linked to U.S. affiliates — may also be exempt.
“The exemption mechanism may partially shield Malaysia’s semiconductor sector given the scale of U.S. and MNC operations in the country,” CIMB noted.
GDP Sensitivity to Tariff Impact
CIMB warns that if fewer exemptions materialize, every additional 10% of chip exports affected could drag GDP by 0.29%.
Short-Term Cushion, Long-Term Uncertainty
In the near term, CIMB expects U.S. policymakers to consider the complexity of global chip supply chains and the risk of higher corporate costs and consumer inflation.
However, over time, production may gradually shift to the U.S., potentially impacting Malaysia’s role in the global chip value chain and altering future investment flows.
By the Numbers
Malaysia exported RM437.5 billion worth of semiconductor products globally in 2024, with RM56.2 billion sent to the U.S.
Comments
Post a Comment