KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
Malaysia’s semiconductor sector may face short-term headwinds as renewed US-China trade tensions threaten to disrupt global supply chains, MBSB Research warned in a note on Thursday.
The firm highlighted that China’s new export restrictions on rare earth elements (REE) and battery technologies, combined with the US’ 100% tariff on Chinese imports, could delay the production of advanced chips and equipment, impacting global and local manufacturers.
“Malaysia, being part of the global semiconductor supply chain, may experience spillover effects,” MBSB said, citing potential disruptions to EV and chip components.
Impact on Malaysia
REE exports fell 9.6% year-on-year to RM4.5 billion in 9M2025 amid weaker demand from China, Thailand, and Japan.
REE-related products make up only 0.4% of Malaysia’s total exports, but account for 6.8% of mining exports.
Higher input costs and delivery delays could affect Malaysia’s E&E, automotive, and green energy supply chains.
Investment Opportunities
MBSB noted that Malaysia could benefit from new foreign direct investments (FDI) in REE processing as companies seek to diversify supply chains away from China.
“Malaysia could position itself as an alternative REE processing hub in Asia,” it said, though warning that geopolitical navigation will be key.
Market Outlook
Despite external risks, MBSB maintained its FBM KLCI year-end target at 1,650 points, citing resilient domestic demand and earnings performance.
It also expects potential foreign fund inflows as US rate cuts boost global liquidity.
“We prefer domestic-centric plays until clarity emerges after the Trump–Xi meeting during the APEC Summit on Oct 31,” it added.
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