Monetary Aggregate Gained Pace While Loan Growth Continued to Ease In April

Economic Research	1 June 2016
Malaysia
Economic Highlights
Monetary Aggregate Gained Pace While Loan Growth Continued to Ease In April Growth of the broader money supply, M3, gained pace to 1.5% y-o-y in April, from +0.9% in March, due to pick-up in demand for funds by private and public sectors. Moving forward, we expect M3 growth to recover to 4.0%-5.0% in 2016, above +2.7% registered last year, as capital outflows subside. Loan growth inched lower to 6.3% y-o-y in April, the weakest in nine years, from +6.4% in March and compared with +7.4% in February. This was attributed to a broad based deceleration in growth of corporate loans and made worse by the ongoing consolidation in the growth of household loans during the month. Economist:  Peck Boon Soon  | +603 9280 2163 Economist:  Vincent Loo Yeong Hong  | +603 9280 2172
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