Yeoh Jia Xin, a standout Bachelor of Economics student, clinched Third place and a substantial RM3,000 cash prize, in the BURSA IDEA (In-Depth Equity Analysis) Research Competition organized by Bursa Malaysia last year. This enthralling competition beckons researchers, analysts, and market enthusiasts to craft compelling research reports centred around the theme “Market Trends and Sector Analysis.”
Unravelling the criteria of the competition, Jia Xin revealed, “The components span macroeconomic analysis, an intricate study of the chosen sector, its outlooks and forecasts, as well as the risks, challenges, and investment opportunities within the sector.” Jia Xin’s research methodology blended both qualitative and quantitative findings, adorned with captivating graphs and illustrations. Opting for the semiconductor sector, his industry report stemmed from a previous assignment, fuelled by an innate curiosity about the sector’s role in shaping the Malaysian economy.
Jia Xin elaborated, “The semiconductor sector research seamlessly integrates with my broader understanding of the Malaysian and global economy, offering insights into the dynamics and complexities through the lens of this specific commodity.” In his exploration of the Malaysian semiconductor sector, Jia Xin unearthed macroeconomic factors, including the cyclicality inherent to the industry and external demands from major trade partners, which significantly influenced the sector’s trajectory.
Yet, amid Jia Xin’s key findings, a poignant realization emerged – Malaysia grapples with a dearth of indigenous innovation in producing higher value-added products, particularly integrated circuits. This revelation propelled Jia Xin to delve deeper into government plans, recognizing the necessity for holistic efforts to elevate the sector into a higher value chain, given the dwindling comparative advantage.
Jia Xin’s research further highlighted the challenges exacerbated by global economic growth and geopolitical conflicts beyond Malaysia’s control. Undeterred, Jia Xin emphasized, “The dwindling comparative advantage demands comprehensive efforts from the government to steer our sector into a higher value chain.” Amid these challenges, a glimmer of hope emerged in the form of NVIDIA’s collaboration with YTL to build AI data centers in Malaysia, a testament to the nation’s potential.
Navigating his research journey, Jia Xin scoured the internet for insights from top organizations such as the International Energy Agency, World Bank, and Bank Negara Malaysia. Employing simple econometrics techniques, he skilfully forecasted the variables at play. Acknowledging time constraints, Jia Xin humbly admitted that his research, crafted primarily for the IDEA competition, may pale in comparison to reports from professional organizations. Nevertheless, it offers valuable insights, making it accessible for beginners seeking to grasp Malaysia’s current standing in the economic landscape.