Malaysia's loan growth slows to 3.2% in October

Loan applications slimmed by 1.1% in the same month.

Malaysian loan growth dipped to 3.2% in October from 3.3% in the previous month, as non-household (HH) loan weakened faster to 1.5% from 4.5% previously, according to a report by Maybank.

Loan applications contracted further by 1.1% in October from a 2% fall in September, the third consecutive month of declines, analyst Desmond Ch’ng noted. Total deposit growth also fell by 3.9% YoY in October from 4.2% in September, but current account savings account (CASA) growth surged for the fourth consecutive month at 5.5% in October.

Conversely, cumulative bond issuances for the first 10 months of 2019 totalled US$26.2b (MYR109.4b), up 24% YoY from the same period last year.

Total industry credit growth dipped 4.7% YoY in October.

Gross impaired loans posted a stable 1.62% in October, inching to US$30m (MYR127m) on an absolute basis.