Analysis

MBSB Research said Wednesday that it sees positive impacts of data center development to Malaysia economic growth and various sectors.

Thailand’s data center sector is set to sustain strong medium-term growth, driven by a rapidly expanding pipeline of hyperscale investments and supportive government policies, even as execution risks around power supply, grid readiness and costs begin to emerge, BMI Country Risk & Industry Research said Monday.

The ASEAN+3 Macroeconomic Research Office (AMRO) said Malaysia’s digital finance ecosystem is entering a more mature phase but faces key structural challenges, including fintech profitability pressures, rising cyber risks and regulatory gaps in fast-growing credit segments such as buy-now-pay-later (BNPL).

Kenanga Research said Monday that advanced packaging will become the next battleground in semiconductor value chain and benefit Malaysia's technology players.

MBSB Research said Monday that completely knocked down (CKD) readiness will mitigate recent policy impact across most electric vehicle (EV) marques in Malaysia.

Malaysia's technology sector is entering an earnings-driven upcycle as improving order books, rising book-to-bill ratios and sustained global spending on artificial intelligence infrastructure support growth prospects, analysts said, although they cautioned that the sector could face increased volatility after a strong rally this year.

Economists have on Monday foresee artificial intelligence (AI) boom to continue to drive Singapore's economy after the city state reported a resilient growth of 6 percent in the first quarter, underpinned mainly by strong AI demand.

Malaysia’s electric vehicle (EV) adoption is expected to continue its upward trajectory over the medium to long term, supported by policy incentives, shifting consumer behavior and gradual changes in fuel subsidy structures, although analysts caution that the transition will remain uneven due to infrastructure gaps and affordability constraints.

Malaysia’s semiconductor industry is benefiting from accelerating China+1 supply chain diversification, deeper localization by global semiconductor equipment makers and rising demand for optical and power semiconductors tied to artificial intelligence (AI)-driven data center expansion, while a recovery at Intel is also providing support to the sector, Hong…

Despite positive spillovers to economic growth and employment, several challenges lie ahead, such as natural resource constraints, limited domestic value added, and questionable impact on long-term employment, the ASEAN+3 Macroeconomic Research Office (AMRO) said Wednesday.