Kuala Lumpur, 14 October 2026 – Malaysian bank loan growth is forecast to slow to 4.3% by the end of 2027 from an estimated 5.0% at end-2026 as economic expansion moderates and monetary conditions remain restrictive. The outlook follows stronger-than-expected lending this year but points to a more selective credit cycle ahead.
Loan growth had accelerated to 5.7% in August from 5.5% in June. BMI expects that momentum to weaken in the fourth quarter and continue easing through 2027. A slower pace would affect banks, households and businesses differently, depending on the quality and purpose of new borrowing.
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