KUALA LUMPUR, July 31 (Bernama) -- Bursa Malaysia ended higher on Friday as investors continued to accumulate blue-chip stocks in line with stronger performances across most regional markets. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 4.50 points to 1,724.90 from yesterday’s close of 1,720.40. The benchmark index opened 0.83 of a point higher at 1,721.23, and moved between 1,715.67 and 1,730.12 throughout the day. The broader market was positive with gainers outpacing losers 707 to 402, while 547 counters were unchanged, 1,085 untraded and 56 suspended. Turnover expanded to 3.03 billion units valued at RM3.56 billion from 2.49 billion units valued at RM2.25 billion on Thursday.
Malaysia’s electrical and electronics (E&E) exports are on course to surpass the record RM601.2 billion in 2024, underpinned by strong semiconductor demand, despite uncertainties over potential US tariffs of up to 100% on chip imports.
From Jan–July 2025, E&E exports rose 17.3% YoY to RM391 billion, with July alone contributing RM63 billion, up 23% YoY. Semiconductors accounted for RM437.5 billion of 2024’s exports, with RM56.2 billion bound for the US.
Industry Views: AI Boom vs Policy Uncertainty
Malaysia Semiconductor Industry Association (MSIA) president Datuk Seri SH Wong noted that exports could beat 2024 levels, barring policy shocks:
“The sector could do better than 2024… However, the threat of 100% tariffs on semiconductors from countries without US chip production plans has introduced uncertainty.”
The AI-driven boom is expected to fuel 11.2% global semiconductor growth in 2025, benefiting Malaysia as a key supply chain hub.
ViTrox Corp (KL:VITROX): CEO Datuk Chu Jenn Weng sees strong H2 momentum from AI infrastructure, EVs, 5G devices and advanced medical tech. Equipment investments are up 21%, reflecting rising demand.
Oppstar Bhd (KL:OPPSTAR): cautious, citing weak consumer electronics and delayed spending.
Pentamaster Corp (KL:PENTA): expects flat performance; EV slowdown and price competition hurt its SiC tester business (30% of revenue).
Sector Trends: Strength in ATE and OSAT, Weakness in EMS
CIMB Securities noted Malaysia’s tech sector delivered a modest +1.4% QoQ sales growth in 2Q25, led by automated test equipment (ATE) and outsourced semiconductor assembly and test (OSAT), while electronics manufacturing services (EMS) fell -4.3%.
Profit pressures remain: sector-wide net profit fell -9.5% QoQ, with only MPI, ViTrox, and VS Industry posting earnings growth.
Global chipmakers project 4–15% sales growth in 3Q25, driven by AI, automotive and industrial recovery.
Malaysia’s ATE and OSAT segments are forecast to expand 5.8% QoQ, versus 7.6% QoQ global growth, reflecting weaker EMS utilisation.
Outlook
Malaysia’s E&E sector is benefiting from AI-driven semiconductor demand, but policy risk from potential US tariffsclouds the longer-term picture. While industry leaders like ViTrox anticipate sustained momentum, others remain cautious amid consumer demand weakness and trade tensions.
If Malaysia maintains exemption from US tariffs, 2025 could mark a new record year for exports. However, the sector’s growth path will hinge on global policy developments and the resilience of its EMS segment.
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