Kuala lumpur: Malaysia needs to move beyond data centres and nurture larger listed technology companies to attract global portfolio investment, said Principal Asset Management Bhd chief executive officer Munirah Khairuddin. She emphasized that although opportunities are emerging in areas like subsea cables, transmission towers, and blockchain technology, Malaysia must also develop technology companies of a sufficient scale to feature more prominently in global equity indices.
According to BERNAMA News Agency, Munirah highlighted Malaysia's current success in semiconductors but questioned whether these companies could achieve a larger market capitalisation. She stressed the importance of nurturing larger listed technology firms capable of carrying greater weight in global equity indices. Speaking at The Invest Shariah 2026 conference, themed "Ethical Investing in a Digital and Volatile World," she addressed the need for Malaysia to enhance its technology sector's representation in global indices.
Citing the MSCI AC Asia Pacific Islamic Index, Munirah noted that information technology accounted for 51.1 per cent of the benchmark, compared to approximately one per cent in Malaysia's FBM EMAS Shariah Index. This reflects the limited presence of domestic technology companies in global equity indices, thereby restricting Malaysia's ability to attract substantial international portfolio flows.
Munirah suggested that Malaysia needs to attract bigger technology companies and explore co-investment opportunities, where local companies could lead projects that might eventually be listed separately or increase the market capitalisation of existing firms. Stronger technology champions would enhance Malaysia's weighting in global indices, making the market more appealing to international investors seeking growth opportunities.
She underscored that global capital is drawn to growth companies and pays close attention to indices, highlighting that Malaysia's current index weight might not be significant enough to attract substantial investment. Munirah proposed that Malaysia could learn from Japan, South Korea, and Taiwan in building globally competitive technology ecosystems, particularly in the semiconductor industry.
On broader investment trends, she identified artificial intelligence (AI), digitalisation, and healthcare as structural themes driving long-term global investment. She noted that AI is transforming industries beyond technology, including biotechnology, healthcare, and logistics, while demographic shifts are creating new investment opportunities.
Munirah also emphasized the importance of digitalisation, pointing out that cloud adoption is fundamental to AI deployment. She highlighted that very few companies entering Malaysia are utilising cloud technology, which is essential for fully leveraging AI's potential.
Moreover, she mentioned that logistics is evolving alongside digitalisation and e-commerce, with increasing demand for modern warehouses, automation, robotics, and temperature-controlled storage facilities.
Finally, Munirah stated that portfolio diversification now involves ensuring investors have sufficient exposure to structural growth sectors. She believes Malaysia is well positioned to capitalise on the AI wave, supported by its growing semiconductor industry and expanding data centre ecosystem. However, she stressed that maintaining high standards, modernising industries, and developing talent will be crucial to attracting more foreign capital to Malaysia's shores.