Bank Lending Growth Consolidates While Money Supply Rise

Economic Research	1 July 2016
Malaysia
Economic Highlights
Bank Lending Growth Consolidates While Money Supply Rise Growth of the broader money supply, M3, gained pace to 2.2% y-o-y in May, from +1.3% in April, due to a pick-up in demand for funds by the public sector. 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. In contrast, loan growth eased marginally to 6.2% y-o-y in May, the weakest in nine years, from +6.3% in April. This was attributed to a deceleration in growth of corporate loans, made worse by the ongoing consolidation 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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