Malaysia poised to benefit from US-China tech decoupling
The firm said the country's established semiconductor ecosystem, strong infrastructure and skilled talent base give it a competitive edge amid shifting production strategies, particularly under the "China Plus One" and "Taiwan Plus One" frameworks.
"Malaysia stands to benefit from US-imposed tariffs via short-term rushed orders and long-term manufacturing reallocation activities," said analysts Lee Meng Horng and Miza Izaimi in a research note today.
They said companies are increasingly mitigating geopolitical risks by relocating part of their operations to alternative locations in Asia, and Malaysia remains a top choice due to its track record and capacity.
"The country's robust ecosystem, talent pool and infrastructure provide a competitive advantage," they added.
RHB Research maintained a positive outlook for the technology sector despite near-term demand uncertainties stemming from excessive inventory build-up.
It said the technology upcycle remains intact, with little evidence so far of major disruptions from global trade frictions.
It also noted that Malaysia's position in the global semiconductor supply chain is expected to strengthen as multinational firms seek more resilient and diversified manufacturing bases.
"The sector remains in an upcycle, showing minimal signs of major disruptions so far," the firm said.
Despite macroeconomic uncertainties and ongoing trade challenges, RHB Research expects structural shifts in global supply chains to support Malaysia's long-term growth in high-tech manufacturing.
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