Change in US Chip Export Rule May Benefit Malaysian Construction, Utility Sectors

The Malaysian construction sector continues to show positive developments, supported by encouraging news of data centre tendering activities, with possible improvement in the sector's prospects on potential changes in the US artificial intelligence (AI) diffusion rule, according to Kenanga Investment Bank Bhd (Kenanga IB).
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It was reported that the Trump administration plans to rescind the Biden-era export restrictions on advanced AI chips under the US diffusion rule.
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Kenanga IB said in a note on Saturday that Malaysian construction stocks had experienced a robust recovery, and the positive news is expected to enhance their valuations further. “For instance, Pearl Computing — an affiliate company of a US-based tech giant — entered into agreements to acquire 389 acres of land from Gamuda Bhd (KL:GAMUDA) in Port Dickson, alongside RM1 billion in enabling infrastructure works, marking a significant step in data centre development initiatives,” the research house said.
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As for the utility sector, Kenanga IB said it also stands to benefit significantly from the ongoing expansion of data centres.
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“A recent update from Tenaga Nasional Bhd (KL:TENAGA) indicates robust demand, with 18 data centre projects totalling 1,900 megawatts (MW) of installed capacity completed as of December 2024. In addition, there are 20 more projects in the pipeline, expected to add another 4,000MW. This surge in demand is anticipated to support Tenaga’s future growth trajectory,” it added.

$GAMUDA / 5398 (GAMUDA BERHAD)
$TENAGA / 5347 (TENAGA NASIONAL BHD)

Source from The Edge