RHB | Malaysia | Broad Monetary Aggregate Inched Up But Loan Growth Weakened In July, 2 Sep 2014

Economic Research	2 September  2014
Malaysia
Economic Highlights
Broad Monetary Aggregate Inched Up But Loan Growth Weakened In July The broader money supply, M3, inched higher to 5.7% y-o-y in July, from +5.6% in June and compared with +8.3% in the same period in 2013. This was reflected in a rebound in external operations but was offset partially by a slower increase in government operations and a weaker demand for funds by the private sector in July. Loan growth, on the other hand, weakened to 8.6% y-o-y in July, from +9.3% in June and compared with +9.2% recorded in the same period in 2013. This was attributed to a weaker growth in household and corporate loans during the month. As a whole, we expect the banking system’s loans to sustain its expansion at 9-10% in 2014, compared with +10.6% in 2013, constrained by more stringent rules on lending to households, as well as the curbs on the property market. Economist:  Peck Boon Soon  | +603 9280 2163 Economist:  Shafizal Shafaai  | +603 9280 2179