Research houses maintain a positive outlook on the Malaysian banking sector, projecting loan growth of 5.5% to 6% for 2025. Factors driving this growth include an expected GDP growth of 4.9% and an upturn in the investment cycle, fueled by increased economic activity and demand for loans in sectors like land, industrial buildings, and factories.
Research houses have maintained their “positive” and “overweight” view on the banking sector and are projecting loan growth of 5.5% to 6% for this year.
The bank highlighted that higher investment flows in 2023 and 2024 are expected to translate into increased economic activity in 2025. Separately, Kenanga Investment Bank Bhd has maintained an overweight call on the banking sector, forecasting industry loan growth at 6%, driven primarily by Johor-based projects.
The bank attributes the projected 6% loan growth to ongoing developments in Johor’s Special Economic Zone and expanding data centre projects, supported by a stable overnight policy rate of 3% expected throughout the year.
BANKING SECTOR LOAN GROWTH ECONOMY INVESTMENT GDP
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