THE Malaysian software sector remained resilient in the first half of 2026, underpinned by sustained revenue growth that translated into year-on-year earnings expansion during the first quarter.
Most companies in the sector reported results that were broadly in line with Maybank Investment Bank’s (MIB) expectations.
Ramssol, however, was the notable exception, posting earnings below forecasts as business volumes came in weaker than anticipated.
Despite persistent macroeconomic uncertainties and geopolitical tensions arising from the conflict in the Middle East, MIB continues to maintain a Positive stance on the sector.
The research house believes the industry’s predominantly domestic and regional business exposure provides a defensive cushion against external headwinds, helping to preserve earnings resilience.
“Our optimism on the sector is structurally anchored on favourable tailwinds stemming from broad-based digitalisation trends, in line with the national push towards digital adoption,” said MIB.
The digitalisation theme continues to be a central pillar of national economic policy, clearly demonstrated by its prominent positioning within Budget 2026 and the 13th Malaysia Plan.
The secular nature of the digitalisation trend provides a favourable backdrop for the software sector.
Strategic national initiatives coupled with sustained demand would continue to serve as the key growth catalyst for the sector.
“As such, we expect the software sector to remain resilient in the second half of 2026,” said MIB.
While earlier narratives centred around “Smart City” developments, Malaysia has reached a critical juncture in its urban digitalization journey and is set to pivot to “AI Cities.”
This strategic transformation serves as a foundational pillar towards Malaysia’s ambitions of being a leading AI City powerhouse in the region, the scope of which extends beyond just the adoption of new technologies towards a comprehensive transformation in urban planning with a focus on enhancing efficiency.
As a leading provider of smart city solutions, MIB believes that ITMAX is well positioned to directly benefit from this national theme.
While ITMAX’s offerings already feature native AI-capabilities, the group is looking to further scale up its AI offerings through the integration of Video Language Model (VLM) and Agentic AI into its SamurAI platform. —June 29, 2026
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