The Bursa Malaysia Technology Index aims to capture the performance of technology companies listed on Bursa Malaysia. The index comprises firms operating in areas such as software development, digital services, and hardware manufacturing. It reflects the importance of technological innovation in Malaysia’s economy and offers investors a focused window into the sector’s growth.
The index has been in existence for several years and includes a diverse range of companies—from established players to emerging tech names. There are currently 49 stocks in the index, which as of August 30, 2024, had a market capitalisation of MYR 78.54 billion.
Bursa Malaysia Technology Index Performance
Similarly to many other tech-related indexes globally, the Bursa Malaysia Technology index rallied significantly towards the end of March 2020, as investors bought up stocks following the COVID-19 pandemic-related dip. It hit a high in November 2021, before tretracing sharply, and over the last couple of years (barring a spike in April 2024) it has remained somewhat rangebound.
| Period | Performance (As of February 2025) |
|---|---|
| 1-Year Performance | -12.04% |
Bursa Malaysia Technology Index Top 5 Companies
The index is reviewed quarterly in March, June, September, and December.
| Company | Market Cap (As of February 2025) |
|---|---|
| Inari Amertron | MYR 8.90 Billion |
| Vitrox Corperation | MYR 7.02 Billion |
| My E.G Services | MYR 7.89 Billion |
| Malaysian Pacific Industries | MYR 4.28 Billion |
| Greatech Technology | MYR 4.47 Billion |
Malaysia Technology Stocks Forecast
The Bull Argument: According to a January 2025 article from New Straits Times, CIMB Securities said it anticipates the Malaysia technology sector’s net profit to grow by 25% on average between 2025 and 2026, driven by investments in artificial intelligence infrastructure and an expected recovery in inventory replenishment for non-AI semiconductor applications.
“We forecast a 17 per cent sector net profit compound annual growth rate (CAGR) between 2023 and 2026, with the outsourced semiconductor assembly and test (OSAT) and electronics manufacturing services (EMS) sectors outperforming in the first half of 2025,” the firm reportedly stated in a note, maintaining an “Overweight” rating onthe sector. Malaysian Pacific Industries, is one of its preferred picks.
Overall, many market participants bullish on Malaysia’s tech sector believe it is set to benefit from the ongoing digital transformation across industries. Increasing investments in cloud computing, artificial intelligence, and data analytics could drive growth, while supportive government policies also have the potential to contribute to a positive long-term outlook. The rising consumer demand for digital services could further bolster optimism for this sector.
The Bear Argument: For every bullish argument, there is also a bearish one, and that also applies to Malaysia tech stocks despite the optimism. Some analysts caution that market uncertainties could lead to increased volatility. Global economic pressures (such as tariffs and their impact on the global economy) and potential regulatory changes may impact investor sentiment. Additionally, competition from larger international tech companies might limit the growth potential of local players.
Last year, Kenanga Research, reportedly highlighted that year-end demand (2024) for consumer electronics and automobiles were expected to slow down in the first quarter, resulting in lower-than-expected sales.
Our View: The technology sector in Malaysia presents a potentially attractive opportunity for investors keen to participate in the rapid growth of Malaysia’s digital landscape. However, we believe that growth will be heavily influenced by the global economy and geopolitical concerns which could weigh heavy, especially given US President Donald Trump’s tariffs. While there are certainly factors to consider, the robust growth prospects and potential make it a potentially positive addition for those seeking exposure to technology in the region.
Who Should Invest in Malaysian Technology Stocks
As we have mentioned when covering other Malaysian indexes, ETFs with a high concentration of stocks in the country are limited. However, the iShares MSCI Malaysia ETF has a 1.5% weighting in information technology stocks.
Still, for those interested, the sector is suited for:
Growth-Focused Investors: As with many other global tech markets, the sector in Malaysia is suitable for those seeking capital appreciation through exposure to technology firms.
Tech Enthusiasts: Investors who are passionate about digital innovation.
Risk-Tolerant Investors: Given the inherent volatility of tech stocks, individuals with a higher risk appetite may find the sector or certain names listed on the Bursa Malaysia appealing.
Long-Term Investors: Those with a long investment horizon can benefit from the sustained growth and digital trajectory shaping Malaysia’s tech sector.
