KUALA LUMPUR, Jan 23 (Bernama) -- Bursa Malaysia’s benchmark index recouped earlier losses to settle higher, maintaining a more than six-year high, buoyed by continued buying interest in technology stocks, while the strengthening of the ringgit against the US dollar further lifted investor sentiment. At 2.27 pm today, the local currency strengthened to 3.9992 versus the greenback, its strongest level in more than seven years. It was last seen at this level on June 18, 2018, at 3.9960/9990. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 2.85 points or 0.17 per cent to 1,719.99 from yesterday’s close of 1,717.14. The index surpassed its previous peak of 1,719.00 recorded on Feb 26, 2019. The barometer index opened 1.30 points lower at 1,715.84 and moved between an intraday low of 1,711.89 in early trade and a high of 1,723.41 in late afternoon before slipping slightly toward the close. However, market breadth was negative with decl...
China has taken a decisive step toward technology self-reliance, ordering domestic organisations to stop using cybersecurity products from leading US and Israeli firms and replace them with local alternatives by 1H 2026, according to a government directive seen by Bloomberg.
What Happened
Chinese authorities instructed companies to identify and phase out foreign cybersecurity products, citing risks that sensitive data could be transmitted overseas or expose customers to security vulnerabilities.
Firms named in the directive include major global cybersecurity players such as:
Palo Alto Networks
Fortinet
Check Point Software Technologies
The advisory also alleged links between these companies and foreign intelligence agencies, though no evidence was provided.
Scope of the Ban
Beyond the headline names, the directive also covers a broad list of cybersecurity and software firms, including:
CrowdStrike Holdings
SentinelOne
Rapid7
CyberArk
Broadcom (via VMware)
McAfee
Alphabet’s Mandiant unit
Several firms noted they do not sell products in China, while others said they had not been formally notified.
Strategic Context
This move mirrors earlier US actions restricting Chinese technology products on national security grounds and reflects a deepening tech decoupling between China and Western economies.
For Beijing, the directive aligns with broader goals to:
Reduce reliance on foreign critical software
Accelerate adoption of domestic cybersecurity solutions
Limit perceived national security risks
Market and Investment Implications
For Global Cybersecurity Stocks
Revenue impact may be limited in the near term, as several affected firms already have minimal China exposure
However, the ban reinforces geopolitical risk premiums for cybersecurity and enterprise software stocks
For China’s Tech Ecosystem
Potential tailwind for domestic cybersecurity vendors
Encourages local substitution and accelerated innovation in security software
For Investors
Highlights the importance of geographic revenue diversification
Reinforces the trend of technology fragmentation, especially in sensitive sectors like cybersecurity, semiconductors, and cloud infrastructure
Bottom Line
China’s ban on foreign cybersecurity products marks another escalation in global tech decoupling. While immediate earnings impact on US and Israeli firms may be contained, the longer-term message is clear: national security considerations are reshaping global tech markets, creating both risks for multinationals and opportunities for domestic champions.
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