Accelerating supply chain diversification and supportive government policies will also boost earnings, he added.
CIMB Securities Sdn upgraded Malaysia’s technology shares to overweight from neutral on improving earnings visibility led by growing demand for artificial intelligence.
The sector “has entered a new upcycle with a potential for valuation re-rating,” CIMB analyst Mohd Shanaz Noor Azam wrote in a report on Thursday. “We expect to see a stronger utilisation pick-up, especially from the second half of 2024 onwards.”
