The semiconductor sector, which is already affected by a shortage, is facing an additional setback as crucial materials are imported mainly from Russia and Ukraine.

Malaysia’s outlook is tentatively optimistic as the domestic economy has largely reopened and restrictions are unlikely to be reinstated despite the Omicron wave, according to Moody’s Analytics.

In its Asia Pacific Economic Preview note, it said geopolitical trends were working in Malaysia’s favour.

“Ukraine exports more of the world’s sunflower oil, and importers are looking at other edible oils such as palm oil to make up for the squeeze in supply.

“As the world’s second largest producer of palm oil, Malaysia will benefit from the uptick in prices, especially if it manages to ease its labour shortage,” it said.

Moody’s Analytics noted that the semiconductor sector, which was already affected by a shortage, was facing an additional setback as crucial materials were exported mainly by Russia and Ukraine.

It said Malaysia has been benefitting from the increased global demand for its electrical exports and would likely to be insulated from the shortage because of its stockpile of raw materials.


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