0829 GMT - Local talent shortages could limit earnings growth in Malaysia's semiconductor sector despite strong global sales and AI infrastructure demand, MBSB Research analyst Martin Foo Chuan Loong says in a note. Southeast Asia has benefited from the so-called China plus 1 and Taiwan plus 1 strategies, but Malaysia faces competition from Vietnam given the similar undertaking, he says. Most local outsourced semiconductor assembly and test stocks have gained 41%-53% year to date, while valuations at 35X-42X forward price/earnings ratios have surpassed their five-year mean. That suggests the earnings recovery is largely priced in, he writes. Any easing in 2H earnings growth could trigger share-price pullbacks, he adds. MBSB maintains a neutral rating on Malaysia's tech sector, with Inari Amertron as its top pick.