Malaysia’s data centre and semiconductor investments resilient despite US tariffs
Amro chief economist Dong He said Malaysia’s data centre and semiconductor investments remain resilient despite US tariffs and tighter technology controls.
Source: The Edge Malaysia · July 21, 2026 at 6:22 PM · AI-assisted report
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KUALA LUMPUR, 22 JULY 2026 —
Amro chief economist Dong He said Malaysia’s data centre and semiconductor investments remain resilient despite US tariffs and tighter technology controls.
Market Impact
He told reporters on Friday that the global technology upcycle will likely continue for at least another year or two, offering Malaysia a window to attract sustained foreign direct investment into these sectors. “Market volatility does not necessarily translate into a pullback in investment,” Dong said.
Despite the risks of financial market corrections if valuations become stretched or an external shock hits, Dong stressed that excessive leverage built up during the boom could expose the financial sector if a downturn occurs.
Amro projects Malaysia’s growth will ease to 4.6% this year from an estimated 4.9% in 2025. The office highlighted Malaysia’s strong electronics exports and accelerating data centre-related investments as signs of resilience, noting that stronger government policies have boosted investor confidence.
Amro lead economist Peh Kian Heng said policymakers should maintain a supportive monetary stance to sustain domestic credit and growth while monitoring inflation and financial stability risks. He urged strengthening foreign reserve buffers, maintaining ample liquidity and reviewing macro-prudential measures to cushion against foreign exchange and credit shocks.
Peh called for more ambitious fiscal consolidation to reduce public debt, including broadening the tax base and revisiting the RON95 fuel subsidy framework to redirect resources toward productivity-enhancing investments and targeted social assistance. He added that governance reforms and improved tax administration would further improve spending efficiency.
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