The Bursa Malaysia Industrial Products & Services Index, as the name suggests, provides a measure of companies operating in the industrial products and services sector that are listed on Bursa Malaysia. This index includes firms that specialise in manufacturing, engineering, industrial equipment, logistics, and related services. It offers investors a view on the companies that drive industrial output and support economic development across Malaysia.
The industrials represented in the index are fundamental to the nation’s economic engine, as they drive manufacturing, infrastructure projects, and supply chain solutions.
As of August 2024, the index held 224 stocks and had a market capitalisation of MYR 235.96 billion.
Bursa Malaysia Industrial Products & Services Index Performance
Despite rallying significantly between July 2023 and July 2024, the index has experienced a sharp downturn and is currently approaching its 2023 lows. The companies in the index remain sensitive to global commodity prices and economic fluctuations.
| Period | Performance (as of February 2025) |
|---|---|
| 1-Year Performance | -7.05% |
Bursa Malaysia Industrial Products & Services Index Top 5 Companies
The index is reviewed quarterly in March, June, September, and December.
| Company | Market Cap (As of August 2024) |
|---|---|
| Petronas Chemicals Group | MYR 33.12 Billion |
| Press Metal Aluminium Holdings | MYR 42.68 Billion |
| Sunway | MYR 29.81 Billion |
| Chin Hin Group | MYR 7.54 Billion |
| Hap Seng Consolidated | MYR 8.14 Billion |
Malaysia Industrial Products & Services Stocks Forecast
The Bull Argument: According to a February 2025 article from Selangor Journal, Public Investment Bank Bhd analysts expect Malaysia’s industrial sector to maintain positive momentum in the near term due to its resilient domestic demand and a gradual easing of supply chain constraints. “Sustained private consumption, targeted fiscal support for investment, and a measured recovery in key trading partners could provide some offsetting support to mitigate external pressures,” the bank reportedly stated.
Overall, market participants are bullish on the sector in Malaysia, believing it will benefit from a resurgence in domestic manufacturing and increased infrastructure spending. Advancements in automation and technology integration could also boost productivity, while a recovering global economy may enhance export demand for Malaysian industrial goods.
The Bear Argument: On the other hand, those bearish on the sector may note that development expenditure dropped from MYR 97 billion in 2023 to MYR 90 billion in 2024. In addition, risks from rising raw material costs and potential disruptions in global supply chains (think tariffs), could impact the sector. Economic uncertainties and slower-than-expected industrial output growth may also dampen performance. Additionally, increased competition from regional peers and potential regulatory hurdles could pressure profit margins.
Our View: The Industrial Products & Services sector in Malaysia provides investors with a potential opportunity to tap into the country’s robust industrial base. While the sector is subject to the cyclical nature of economic cycles and commodity price fluctuations, its long-term outlook remains positive due to the expected infrastructure investments and technological improvements in manufacturing.
Who Should Invest in Malaysian Industrial Products & Services Stocks
While ETFs with a high concentration of Malaysian industrial stocks are limited, the iShares MSCI Malaysia ETF has a strong 8.95% weighting to names in the industry, making it a potential option for investors, especially those bullish on the Malaysian economy as a whole. Alternatively, individual names may be an option.
Investors with an interest in the sector should be aware that it is more suited to:
Growth-Focused Investors: Those who believe in the potential for industrial expansion and technological innovation within the country.
Income-Oriented Investors: With many companies offering consistent dividends, the index is attractive for those seeking regular income. For example, Petronas Chemicals currently (as of February 2025) has a 3.6% dividend yield.
Long-Term Investors: Individuals with a longer investment horizon can benefit from the gradual growth and structural improvements in Malaysia’s industrial landscape.
Investors Looking For Diversification: Adding industrial exposure can help balance a broader portfolio, particularly for those with significant allocations in more cyclical or tech-driven sectors.
