Stock Today: MPI Slides 3.3% As Tech Sentiment Wavers Amid Trade Tensions
The selling momentum follows recent announcements by the United States regarding new 25% tariffs on Malaysian exports, sparking concern over potential disruptions in semiconductor equipment and hardware segments closely linked to MPI's operations, which include silicone wafer fabrication and semiconductor packaging.
Although MPI did not comment directly, the heightened uncertainty around trade negotiations and proposed restrictions on AI chip shipments may have prompted investors to reassess exposure to export-driven tech stocks. Earlier this year, Malaysia reported a drop in electronic exports, coinciding with PMI data showing weaker factory orders and a cautious tone in capital investment.
Despite today's dip, MPI remains well-positioned due to its diversified customer base and ongoing expansion plans aimed at capturing growth in advanced packaging for AI and 5G chipsets. Analysts suggest that stable semiconductor demand and successful trade negotiations could provide an upside for MPI's share price.
For now, market attention remains focused on how upcoming policy decisions by Bank Negara Malaysia, global trade developments, and semiconductor export rules will affect MPI's earnings and investor confidence in the technology sector. Related
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New Straits Times
8 minutes ago
- New Straits Times
Rate cut to spur moderate demand in property sector, say analysts
KUALA LUMPUR: The cut in the Overnight Policy Rate (OPR) by Bank Negara Malaysia (BNM) will spur moderate demand for properties in general in the second half (2H) of this year while demand in the high-end segment will continue to be robust, analysts say. They contend that the lower benchmark lending rate, together with infrastructure growth and incentives for developers, will maintain the property market's resilience with stable price trends amid a cautiously optimistic outlook. JLL Malaysia managing director Jamie Tan told Bernama that stable economic conditions, wealth preservation strategies and attractive incentives have encouraged upgraders and investors to remain active despite the cautious sentiment in the broader market. Nevertheless, analysts contend that it is an opportune time for buyers. Although price softening is seen in some high-end urban pockets, they believe overall sentiment has improved, particularly in infrastructure-connected zones and prime city areas. Nevertheless, real estate experts said they notice the rate cut has led to a noticeable increase in property viewings and home loan inquiries, which could boost buying sentiment especially in the mid-range segment. Luxury Homes Defy Downtrend Despite a general slowdown in the overall real estate market in the first quarter (1Q) of this year, the high-end segment demonstrated greater resilience. This was evident by the 5.6 per cent year-on-year increase in transactions for properties priced above RM1 million, according to the National Property Information Centre (Napic). While the overall volume and value of property transactions declined by 6.2 per cent and 8.9 per cent respectively, demand for luxury homes in Kuala Lumpur, Penang, and Johor Bahru remained firm, driven by affluent buyers seeking high-quality developments in prime locations. Prices Holding Steady in Urban Centres Tan said residential prices across Malaysia's major urban centres remained steady, with modest gains recorded across key segments. In the Klang Valley, serviced apartments and condominiums saw price increases of between 1.8 and 2.3 per cent, while double-storey terrace home prices rose 1.4 per cent. "These figures reflect sustained demand and market stabilisation following the post-pandemic recovery," he said, adding that balanced new supply and consistent buyer demand have supported price stability. IQI co-founder and chief executive officer Kashif Ansari expressed optimism the current market overhang at about 4.8 months of sales volume is still relatively healthy, especially compared with countries like the United States (US), where overhang rates hover around 10 months. Affordability Challenges for Mass Market Kashif said in contrast, the sub-RM500,000 market faced more significant challenges. Transaction volumes and values in this price segment declined, reflecting affordability pressures and cautious spending among mass-market buyers. "While many buyers are financially stable, factors like rising living costs and stagnant wages continue to weigh on sentiment," he said. To address affordability gaps, Kashif said developers and policymakers must focus on boosting supply in the RM200,000 to RM500,000 range, where demand is high but product availability remains limited. Improved Overhang Situation, But Strategic Supply Needed Residential overhang rates, while improving, still warrant attention. According to JLL, overhang rates stood at 23 per cent in Selangor and Johor and 19 per cent in Kuala Lumpur as of the second quarter (2Q) of 2025, marking improvements from pandemic-era peaks of 63 per cent in 2020-2021. "Not all unsold stock is equal. Properties with strong locations, connectivity and design features continue to attract buyers, while poorly located or overbuilt units struggle," Tan said. Competition among developers remains intense, with many offering incentives to boost sales without officially cutting prices. These include price rebates, renovation packages, legal fee absorption and even lifestyle perks like travel vouchers. OPR Cut Sparks Renewed Buyer Interest BNM's OPR cut to 2.75 per cent on July 10, after about two years of no change, has boosted buyer sentiment. While the OPR rate remained unchanged at 3.0 per cent since May 2023, the latest cut is seen as an opportune time for homebuyers to enter the market. Real estate experts reported a noticeable increase in property viewings and home loan inquiries following the rate cut. "This reduction improves affordability. A borrower financing a RM500,000 home could save around RM66 per month, adding up to RM23,000 over a 30-year loan. That's a tangible incentive," said Kashif. In combination with developer incentives, the rate cut is expected to revive activity particularly in the mid-range market, where value-for-money is key. However, he said that the property market remains sensitive to broader economic conditions. External shocks such as geopolitical tensions, policy instability, or global economic slowdowns could dampen momentum. Infrastructure as a Growth Catalyst On the other hand, infrastructure continues to play a key role in driving property values. Homes located near public transport networks such as Mass Rapid Transit (MRT) and Light Rail Transit (LRT) stations, consistently outperform the broader market. Citing a study by Universiti Pendidikan Sultan Idris, Kashif said that properties within 400 metres of MRT stations on the Sungai Buloh-Kajang (SBK) line sold at a 9.5 per cent premium post-completion, about RM99,900 more than the citywide average. Tan, meanwhile, also cited transit-oriented developments, which would benefit from long-term desirability, making it attractive even in softer market conditions. "Connectivity drives footfall, rental demand and capital values. Investors perceive infrastructure-rich areas as lower-risk and higher-return zones," said Tan. Johor's Transformation Boosting Values Johor is emerging as a standout market, driven by the Johor-Singapore Special Economic Zone (JS-SEZ) and the upcoming Rapid Transit System (RTS) Link. These mega-projects are spurring development interest and price growth. As of 2Q 2025, serviced apartment prices in strategic areas such as Bukit Chagar and the Customs, Immigration and Quarantine complex have surged by up to 20.4 per cent. New projects are fetching prices of RM1,500 per sq ft and above – levels previously limited to Kuala Lumpur's Golden Triangle. "Johor's cross-border connectivity is a powerful magnet for both developers and investors," Tan said. Towards Holistic, Livable Development Looking forward, analysts emphasised the importance of holistic urban planning and inclusive housing strategies. "Developers must align their projects with real community needs, not just profit margins," said Tan. This includes better coordination with local councils, sustainable design and ensuring access to amenities, public transport and green spaces. Kashif echoed the call, adding that a stable property market should prioritise accessibility, housing quality, and long-term livability, not just price performance. Regulatory clarity and streamlined approval processes are also key to maintaining investor confidence. Tan urged more consistent guidelines from federal and local authorities to avoid delays and uncertainty. He lamented that "frequent policy changes discourage long-term planning and add costs to development." To spur affordable housing, both experts recommended refining the Home Ownership Campaign, introducing tax incentives for affordable housing developers and avoiding haphazard launches that could flood the market. He cautioned that without proper planning, "we risk another overhang situation." Positive Overall Outlook for Property Sector While Malaysia's property market faces challenges in affordability and oversupply in some segments, the overall outlook remains positive. Stable economic conditions, supportive monetary policy, infrastructure development and a responsive developer ecosystem are helping to maintain resilience. With targeted policy support and careful supply alignment, 2Q 2025 could see renewed momentum, especially in the mid- and high-end segments that deliver both value and connectivity.
Borneo Post
2 hours ago
- Borneo Post
Malaysia timber trade hits RM9.95 bln in Q1 2025, eyes RM4 bln furniture exports by 2030
Zainal (seated centre) joins members of the newly installed SFIA 2025-2028 committee for a group photo. KUCHING (July 20): Malaysia's total trade value for timber and timber products, including exports and imports, reached RM9.95 billion in the first four months of this year, said Sarawak Timber Industry Development Corporation (STIDC) general manager Zainal Abidin Abdullah. He said exports contributed RM7.18 billion, signifying a strong demand for Malaysian timber products, while imports stood at RM2.767 billion, reflecting healthy domestic use and a well-connected supply chain. Wooden furniture took the lead in exports, bringing in RM3 billion, followed by plywood (RM742.5 million), sawn timber (RM582.5 million), and fibreboard (RM210 million). 'Last year, our timber exports reached RM22.9 billion, a solid 4.9 per cent increase from the previous year. This steady growth shows how resilient and adaptable our industry truly is,' Zainal said during the Sarawak Furniture Industry Association's (SFIA) 17th committee installation dinner held at Borneo Convention Centre Kuching on Friday. He said Sarawak's timber export earnings reached RM2.84 billion last year, a slight decrease from RM3.14 billion in 2023. 'More than numbers, these achievements underscore the timber industry's important role not only in driving Malaysia's economy but also in creating jobs and supporting communities, especially in rural areas,' he said. According to Zainal, innovation in design remains vital as Sarawak adapts to changing market trends, while efforts to expand market access through trade fairs and export programmes are opening doors worldwide. However, he pointed out that material shortages are a significant hurdle, with Malaysia importing up to 60 per cent of its raw materials like timber, hardware, and fabrics. 'Sarawak, despite its rich timber resources, often exports raw wood rather than finished products, limiting value-added opportunities. 'In addition, our industry relies heavily on foreign workers, which affects skills retention and innovation. Locally, there is a shortage of skilled craftsmen and designers, which slows productivity and the adoption of new technologies,' he added. Zainal also said Sarawak faces competition from emerging markets, such as China and Vietnam, while limited access to advanced technology and a small domestic market restrict growth. He added that environmental regulations and concerns about deforestation add further complexity, requiring sustainable practices that can be costly and difficult to implement. 'Despite these challenges, there is great potential for Sarawak's furniture industry, which can carve out a stronger position in the global market by investing in skills development, innovation, and sustainable practices,' he emphasised. On STIDC, Zainal said a comprehensive Furniture Industry Blueprint has been developed to map out a clear, strategic pathway for the sector's growth, encompassing product development, supply chain strengthening, and market expansion. 'In collaboration with the SFIA, STIDC is actively compiling a detailed database of member companies and their offerings, which will serve as a foundation for this blueprint. 'Through joint brainstorming sessions, we aim to establish a robust and integrated supply chain that supports our ambition to achieve RM4 billion in furniture export revenue by 2030,' he added. Meanwhile, SFIA president Leo Chiang said the furniture industry in Sarawak is facing an increasingly complex landscape, shaped by global and local shifts. 'Challenges – including the US tariffs affecting exports, Malaysia's expanded SST (Sales and Services Tax) raising operational costs, and the introduction of FWTA (Foreign Workers Transformation Approach) in Sarawak – add intense pressure and demand closer collaboration with stakeholders. 'Now, more than ever, we must work together to stay resilient and competitive,' he stressed. Chiang also said they look forward to even closer cooperation with STIDC in shaping policies, facilitating training, supporting innovation, and promoting Sarawak-made furniture on the global stage. 'We must also remain committed to developing our SMEs (small and medium enterprises), uplifting design capabilities, embracing sustainable practices, and grooming the next generation of industry players,' he added. *Editor's note: This article has been amended for accuracy. lead stidc timber trade Zainal Abidin Abdullah
Barnama
3 hours ago
- Barnama
Rate Cut To Spur Moderate Demand In Property Sector, Say Analysts
They contend that the lower benchmark lending rate, together with infrastructure growth and incentives for developers, will maintain the property market's resilience with stable price trends amid a cautiously optimistic outlook. KUALA LUMPUR, July 20 (Bernama) -- The cut in the Overnight Policy Rate (OPR) by Bank Negara Malaysia (BNM) will spur moderate demand for properties in general in the second half (2H) of this year while demand in the high-end segment will continue to be robust, analysts say. Although price softening is seen in some high-end urban pockets, they believe overall sentiment has improved, particularly in infrastructure-connected zones and prime city areas. Nevertheless, analysts contend that it is an opportune time for buyers. JLL Malaysia managing director Jamie Tan told Bernama that stable economic conditions, wealth preservation strategies and attractive incentives have encouraged upgraders and investors to remain active despite the cautious sentiment in the broader market. Nevertheless, real estate experts said they notice the rate cut has led to a noticeable increase in property viewings and home loan inquiries, which could boost buying sentiment especially in the mid-range segment. Despite a general slowdown in the overall real estate market in the first quarter (1Q) of this year, the high-end segment demonstrated greater resilience. This was evident by the 5.6 per cent year-on-year increase in transactions for properties priced above RM1 million, according to the National Property Information Centre (Napic). While the overall volume and value of property transactions declined by 6.2 per cent and 8.9 per cent respectively, demand for luxury homes in Kuala Lumpur, Penang, and Johor Bahru remained firm, driven by affluent buyers seeking high-quality developments in prime locations. Prices Holding Steady in Urban Centres Tan said residential prices across Malaysia's major urban centres remained steady, with modest gains recorded across key segments. In the Klang Valley, serviced apartments and condominiums saw price increases of between 1.8 and 2.3 per cent, while double-storey terrace home prices rose 1.4 per cent. 'These figures reflect sustained demand and market stabilisation following the post-pandemic recovery,' he said, adding that balanced new supply and consistent buyer demand have supported price stability. IQI co-founder and chief executive officer Kashif Ansari expressed optimism the current market overhang at about 4.8 months of sales volume is still relatively healthy, especially compared with countries like the United States (US), where overhang rates hover around 10 months. Affordability Challenges for Mass Market Kashif said in contrast, the sub-RM500,000 market faced more significant challenges. Transaction volumes and values in this price segment declined, reflecting affordability pressures and cautious spending among mass-market buyers. 'While many buyers are financially stable, factors like rising living costs and stagnant wages continue to weigh on sentiment,' he said. To address affordability gaps, Kashif said developers and policymakers must focus on boosting supply in the RM200,000 to RM500,000 range, where demand is high but product availability remains limited. Improved Overhang Situation, But Strategic Supply Needed Residential overhang rates, while improving, still warrant attention. According to JLL, overhang rates stood at 23 per cent in Selangor and Johor and 19 per cent in Kuala Lumpur as of the second quarter (2Q) of 2025, marking improvements from pandemic-era peaks of 63 per cent in 2020-2021. 'Not all unsold stock is equal. Properties with strong locations, connectivity and design features continue to attract buyers, while poorly located or overbuilt units struggle,' Tan said. Competition among developers remains intense, with many offering incentives to boost sales without officially cutting prices. These include price rebates, renovation packages, legal fee absorption and even lifestyle perks like travel vouchers. OPR Cut Sparks Renewed Buyer Interest BNM's OPR cut to 2.75 per cent on July 10, after about two years of no change, has boosted buyer sentiment. While the OPR rate remained unchanged at 3.0 per cent since May 2023, the latest cut is seen as an opportune time for homebuyers to enter the market. Real estate experts reported a noticeable increase in property viewings and home loan inquiries following the rate cut. 'This reduction improves affordability. A borrower financing a RM500,000 home could save around RM66 per month, adding up to RM23,000 over a 30-year loan. That's a tangible incentive,' said Kashif. In combination with developer incentives, the rate cut is expected to revive activity particularly in the mid-range market, where value-for-money is key. However, he said that the property market remains sensitive to broader economic conditions. External shocks such as geopolitical tensions, policy instability, or global economic slowdowns could dampen momentum. Infrastructure as a Growth Catalyst On the other hand, infrastructure continues to play a key role in driving property values. Homes located near public transport networks such as Mass Rapid Transit (MRT) and Light Rail Transit (LRT) stations, consistently outperform the broader market. Citing a study by Universiti Pendidikan Sultan Idris, Kashif said that properties within 400 metres of MRT stations on the Sungai Buloh-Kajang (SBK) line sold at a 9.5 per cent premium post-completion, about RM99,900 more than the citywide average. Tan, meanwhile, also cited transit-oriented developments, which would benefit from long-term desirability, making it attractive even in softer market conditions. 'Connectivity drives footfall, rental demand and capital values. Investors perceive infrastructure-rich areas as lower-risk and higher-return zones,' said Tan. Johor's Transformation Boosting Values Johor is emerging as a standout market, driven by the Johor-Singapore Special Economic Zone (JS-SEZ) and the upcoming Rapid Transit System (RTS) Link. These mega-projects are spurring development interest and price growth. As of 2Q 2025, serviced apartment prices in strategic areas such as Bukit Chagar and the Customs, Immigration and Quarantine complex have surged by up to 20.4 per cent. New projects are fetching prices of RM1,500 per sq ft and above -- levels previously limited to Kuala Lumpur's Golden Triangle. 'Johor's cross-border connectivity is a powerful magnet for both developers and investors,' Tan said. Towards Holistic, Livable Development Looking forward, analysts emphasised the importance of holistic urban planning and inclusive housing strategies. 'Developers must align their projects with real community needs, not just profit margins,' said Tan. This includes better coordination with local councils, sustainable design and ensuring access to amenities, public transport and green spaces. Kashif echoed the call, adding that a stable property market should prioritise accessibility, housing quality, and long-term livability, not just price performance. Regulatory clarity and streamlined approval processes are also key to maintaining investor confidence. Tan urged more consistent guidelines from federal and local authorities to avoid delays and uncertainty. He lamented that 'frequent policy changes discourage long-term planning and add costs to development.' To spur affordable housing, both experts recommended refining the Home Ownership Campaign, introducing tax incentives for affordable housing developers and avoiding haphazard launches that could flood the market. He cautioned that without proper planning, 'we risk another overhang situation.' Positive Overall Outlook for Property Sector While Malaysia's property market faces challenges in affordability and oversupply in some segments, the overall outlook remains positive. Stable economic conditions, supportive monetary policy, infrastructure development and a responsive developer ecosystem are helping to maintain resilience. With targeted policy support and careful supply alignment, 2Q 2025 could see renewed momentum, especially in the mid- and high-end segments that deliver both value and connectivity. -- BERNAMA BERNAMA provides up-to-date authentic and comprehensive news and information which are disseminated via BERNAMA Wires; BERNAMA TV on Astro 502, unifi TV 631 and MYTV 121 channels and BERNAMA Radio on FM93.9 (Klang Valley), FM107.5 (Johor Bahru), FM107.9 (Kota Kinabalu) and FM100.9 (Kuching) frequencies. Follow us on social media : Facebook : @bernamaofficial, @bernamatv, @bernamaradio Twitter : @ @BernamaTV, @bernamaradio Instagram : @bernamaofficial, @bernamatvofficial, @bernamaradioofficial TikTok : @bernamaofficial
