Slowdown in Loan Growth Continues, Whilst Money Supply Inched Higher in August

Economic Research	4 October 2016
Malaysia
Economic Highlights
Slowdown in Loan Growth Continues, Whilst Money Supply Inched Higher in August Growth of the broader money supply, M3, inched marginally higher to 2.4% y-o-y in August, from +2.3% in July and compared to +1.9% in June, due to a pick-up in external operations. Including the Islamic Investment Accounts, M3 eased to 4.3% y-o-y during the month, from +4.7% in July. This is 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 3.9% y-o-y in August, the weakest in nine years, from +5.1% in July and compared with +5.6 in June. This was attributed to a deceleration in the growth of corporate loans. Economist:  Vincent Loo Yeong Hong  | +603 9280 2172 Economist: Aris Nazman Maslan | +603 9280 2184
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