RHB | Malaysia | Broad Monetary Aggregate Picked Up While Loan Growth Remained Stable In August, 1 Oct 2014

Economic Research	1 October 2014
Malaysia
Economic Highlights
Broad Monetary Aggregate Picked Up While Loan Growth Remained Stable In August The broader money supply, M3, picked up to 5.5% y-o-y in August, from +4.9% in July and compared with +7.7% in the same period of 2013. This was reflected in a rebound in external operations and a pick-up in government operations. Loan growth, on the other hand, remained stable at 8.6% y-o-y in August, unchanged from the previous month and compared with +9.3% recorded in the same period in 2013. A stronger growth in corporate loans mitigated the weaker growth in household 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