AI and software drive opportunities in Malaysia's tech sector

KUALA LUMPUR: Malaysia's technology sector is expected to show uneven growth in 2026, with opportunities concentrated in AI-driven semiconductors and software, according to Maybank Investment Bank Bhd (Maybank IB).

Analysts Lucas Sim and Justin Yeoh said the local semiconductor industry is projected to grow, driven by demand in artificial intelligence (AI) and data centre applications.

They noted that hardware technology faced a challenging 2025, impacted by tariff pressures, a weak US dollar and limited AI exposure, leading to uneven recovery across sub-segments.