Malaysia's technology sector, a critical driver of the nation's economic growth, faces significant uncertainty as potential policy shifts under the Trump administration loom large, according to a recent report by TA Securities.
The investment firm has identified key risks, particularly the possibility of U.S. sectoral tariffs on semiconductors, which could disrupt Malaysia's position as a major player in the global tech supply chain.
U.S. Tariffs: A Growing Concern for Malaysia's Tech Industry
TA Securities specifically highlighted that proposed tariffs could impact semiconductor exports, a cornerstone of Malaysia's tech economy, potentially leading to reduced earnings in 2026.
Historically, Malaysia has benefited from its strategic role in the global semiconductor market, with regions like Penang serving as hubs for multinational tech giants.
However, past trade tensions, such as those during Trump's first term, demonstrated how quickly policy changes can ripple through export-dependent economies like Malaysia.
Broader Implications Amid Global Semiconductor Dynamics
Beyond tariffs, TA Securities pointed to other influencing factors, including fluctuations in global semiconductor sales and the progress of Malaysia's National Semiconductor Strategy.
The tech sector's vulnerability is further compounded by potential slowdowns in AI-driven demand, which has been a significant growth catalyst in recent years.
Looking ahead, analysts warn that a risk-fraught recovery could define 2026, even as Malaysia benefits from positive global growth tailwinds and improving revenue momentum among domestic backend players.
Malaysia's Tech Future: Balancing Risks and Opportunities
The Malaysian government has been proactive in bolstering the sector through incentives and infrastructure investments, but external pressures like U.S. policy remain outside its control.
Industry stakeholders are urged to diversify markets and strengthen local innovation to mitigate the impact of potential trade disruptions.
As the world watches the unfolding of Trump's policy agenda in 2025, Malaysia's tech sector braces for challenges that could reshape its economic trajectory in the coming years.
Maria Lourdes
