- Maintain OVERWEIGHT; we like Frencken and UMS for sector pick-up, Venture Corp for long-term multi-bagger play.
- - Read this at SGinvestors.io -
- higher demand for chip manufacturing and equipment, benefitting Frencken, and UMS, and
- AI data centre (DC) ramp-up that will lead to more demand for Venture Corp’s services.
- - Read this at SGinvestors.io -
Firm external macroeconomic outlook for Malaysia.
- Our RHB Economics team sees Malaysia’s 2026 export growth at 9.3% y-o-y this year (+6.5% y-o-y in 2025), underpinned by robust global and regional growth in demand, as well as continued strength in E&E exports.
- We expect the E&E sector to maintain its growth momentum, driven by the continued global demand for semiconductor components and consumer electronics. Structural drivers, particularly AI, advanced DCs, electric vehicles and automation are likely to continue supporting semiconductor demand.
- RHB Economics’ 2026 GDP growth forecast remains strong at 4.7% y-o-y, with an accelerating 2026 Industrial Production Index (IPI) at 4.1% - contributed by global E&E demand, including technology upcycle
Global semiconductor sales are expected to continue growing.
- Read more at SGinvestors.io.
