Foreign investors have been selling Malaysian stocks for 29 consecutive sessions, marking the longest outflow streak since June 2018. Concerns over the country’s AI projects, amid US efforts to regulate advanced chip technology transfers, have contributed to this trend.
So far this quarter, global funds have withdrawn over US$2.1 billion from Malaysian stocks on a net basis—the largest quarterly outflow since Q2 2018, according to Bloomberg data.
As a result, the FTSE Bursa Malaysia KLCI has declined 6.8% this year.
Market strategist Jun Rong Yeap from IG Asia highlighted that Trump’s tariffs have raised concerns about the sustainability of US semiconductor firms’ investments in Malaysia. This uncertainty, he noted, could hinder Malaysia’s goal of becoming a regional semiconductor hub.–BLOOMBERG
