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.
Key Takeaway
Malaysia’s semiconductor sector may avoid the full impact of the proposed 100% U.S. chip tariff, with up to 65% of exports potentially exempted due to originating from U.S. firms operating in Malaysia, according to CIMB analysts.
Tariff Exposure
Around 65% of Malaysia’s chip exports to the U.S. come from American companies with domestic facilities.
An additional portion of the remaining 35% may also qualify for exemption due to U.S. ownership or linkages.
Macro Sensitivity
Every 10% of chip exports affected could reduce Malaysia’s GDP by 0.29%, highlighting the economy’s exposure to U.S. policy shifts.
Analysts caution that while exemptions may soften short-term impact, longer-term risks remain as companies reassess supply chain locations, potentially denting Malaysia’s investment outlook.
Policy & Outlook
CIMB holds its 2025 GDP growth forecast at 4.3%.
Expects Bank Negara Malaysia to keep the OPR steady at 2.75% through 2025, as policymakers weigh tariff uncertainties against domestic inflation.
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