KUALA LUMPUR: The re-election of Donald Trump as the 47th President of the United States (US) after winning the new presidential election this week could affect Malaysia, particularly in the energy, trade and export, and technology and manufacturing sectors.
Digital investment firm Moomoo Malaysia’s senior equity and derivatives dealer, Ahmad Fidauddin, said that Trump’s policies are expected to favour traditional energy sectors, supporting fossil fuel industries and easing regulations.
"For Malaysia, this aligns with the strengths of its oil and gas sector. This will help the FTSE Bursa Malaysia (FBM) Energy Index, which is currently sitting at around 840.90 points, as oil demand is expected to increase.
"With the US potentially scaling back renewable energy incentives in favour of traditional fuels, Malaysian petroleum companies are well-positioned to capitalise on this shift, potentially seeing boosted export figures as US policies prioritise oil and gas reliance,” he said.
In a statement today, Ahmad said that for trade and export-dependent sectors, US protectionist policies could pose challenges for Malaysia’s export-driven economy, especially for sectors such as palm oil, electronics, and rubber.
"The FBM Plantation Index, which includes major palm oil companies, is vulnerable to fluctuations as increased tariffs could affect competitiveness in the US market,” he said.
He said that for the technology and manufacturing sectors, Trump’s emphasis on boosting domestic manufacturing in the US may disrupt global supply chains, particularly for the semiconductor industry, where Malaysia holds a strong position.
"The FBM Technology Index, which saw a decline in the past few months due to massive global sell-offs, has long-term optimism from analysts, but it may face challenges if new US policies encourage domestic sourcing of components.
"Conversely, Malaysian technology companies could mitigate these effects by strengthening partnerships within ASEAN, especially with countries in high-growth markets in Asia that continue to demand advanced tech components,” he added.
At 11.58 am, the Bursa Malaysia Energy Index edged up 0.08 of-a-point to 828.06, and the Plantation Index surged 20.99 points to 7,600.92. Meanwhile, the Technology Index declined by 1.49 points to 60.95. - Bernama
