PETALING JAYA: An average of 8% year-on-year (y-o-y) sales growth can be expected for the Malaysian technology sector in the first quarter of this year (1Q24) as global semiconductor demand recovery remains on track for the year.
The growth in sales will be driven by higher utilisation amidst a pick-up in inventory replenishment in the supply chain and favourable foreign exchange movement following the appreciation in US dollar against the ringgit.
This will represent the first y-o-y sales growth in the past six quarters since 4Q22.
Nevertheless, its sector sales forecast still implies a 5% quarter-on-quarter (q-o-q) decline in 1Q24 sales, CIMB Research said.
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