Tech firms face challenges from weak ringgit, softening markets

Fortress Capital's Yong sees a possibility of tech sector recovery if China consumer spending picks up strongly in the second half of this year.

TECHNOLOGY stocks on Bursa Malaysia tend to be closely followed by investors, given their importance in the wider semiconductor supply chain ecosystem.

Two developments are having an impact on these companies – the still depreciating value of the ringgit and the slowdown in demand from top export markets such as the United States and China.