Money Supply Gains Pace in July, While Loan Consolidation Continues

Economic Research	1 September 2016
Malaysia
Economic Highlights
Money Supply Gains Pace in July, While Loan Consolidation Continues Growth of the broader money supply, M3, picked up to 2.3% y-o-y in July, from +1.9% in June and compared to +2.2% in May, due to a pickup in demand for funds from external operations. Including the Islamic Investment Accounts, M3, gained pace to 4.7% y-o-y in July, from +4.1% in June. This in line with our M3 estimate of 4.0%-5.0% as at end-2016, above the +2.7% registered last year. In contrast, loan growth eased further to 5.1% y-o-y in July, the weakest in nine years, from +5.6% in June and compared with +6.2 in May. This was attributed to a deceleration in growth of corporate loans, made worse by the ongoing consolidation of household loans during the month. Economist:  Vincent Loo Yeong Hong  | +603 9280 2172 Economist: Aris Nazman Maslan | +603 9280 2184
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