According to RHB Investment Bank, the Malaysian loan growth is expected to fall to 0.4 percent year-on-year, as demand from both business and economy declines into a deeper contraction.
In a news report by The Edge Malaysia, the financial institution stated that the nation’s banking system loan growth rose slightly to 4 percent y-o-y in March from February’s 3.9 percent.
Corporate loans on the other hand saw a rise in loan growth in 4.4 percent y-o-y during February which was caused by higher loan disbursements to most sectors except wholesale & retail and construction.
RHB further said that the as the Government has extended loan facilities, demand for business loans is increasing.
Meanwhile, according to the news report, the bank said the decline in household loans reflects the slowing economy.
Cash in circulation is expected to increase in the short term due to the cash handouts from April however, the bank is expecting growth to decline in tandem with more moderate economic activity in M3.