Malaysian private sector loans rose by 5.4% in Nov

Corporate bonds grew whilst business loan growth was unchanged.

Loans extended to Malaysia’s private sector grew at a faster rate in November 2024 compared to the previous month on the back of more corporate bonds.

Credit to the private non-finance sector expanded by 5.4% in November, versus the 5.1% growth in October, data from the Bank Negara Malaysia (BNM) showed.

Corporate bonds grew by 3.8% in November, higher than the 2.6% growth recorded in October.

Growth in business loans was unchanged at 5.4% over the same period.

Loan growth for investment-related loans, including small and medium enterprises (SMEs), rose 9.4% in November, extending the 9.2% growth in October.

Loans for working capital needs grew at a slower pace, at 3.5% versus the 3.8% growth in October.

For households, loan growth was 6% in November, which the central bank attributed to “broadly steady growth across loan purposes.”

The banking system’s liquidity buffers remained “healthy,” according to the BNM, with a liquidity coverage ratio of 147.9% in November. The aggregate loan-to-fund ratio is 83.6%.