Positive Momentum: Non-Financial Private Sector Credit Rises in Malaysia

KUALA LUMPUR-Non-financial private sector credit grew by 5.2% in November 2024 compared to 5.1% in October, primarily driven by higher growth in corporate bonds at 3.8% (October 2024: 2.6%), according to Bank Negara Malaysia (BNM).

In a statement today, the central bank noted that business loan growth remained stable at 5.4%.

“Growth in investment-related loans continued to be encouraging, particularly among small and medium enterprise (SME) borrowers at 9.4% (October 2024: 9.2%),” the bank stated.

Meanwhile, loans for working capital purposes declined slightly to 3.5% from 3.8% in October 2024.

Household lending growth was maintained at 6.0%, marginally down from 6.1% in October 2024.

BNM also reported that the banking system continued to exhibit robust liquidity buffers, with an aggregate liquidity coverage ratio of 147.9% (October 2024: 146.8%).

The aggregate loan-to-fund ratio remained generally stable at 83.6%, slightly lower than October’s 84%.

The asset quality of the banking system remained strong, with the gross and net impaired loan ratios stable at 1.5% and 0.9%, respectively.

Loan loss coverage ratios, including regulatory reserves, remained prudently high at 128.1% of impaired loans (October 2024: 126.6%).