
Malaysia’s private sector loans up 5.4% in May
Business loan growth accelerated whilst corporate bond growth moderated.
Loans to Malaysia’s private non-financial sector grew by 5.4% in May 2025, on higher growth in business loans, according to data from the Bank Negara Malaysia (BNM).
Business loans grew 5% during the month, ramping up from the 4.4% growth recorded in April, on working capital loans particularly those not for small and medium-enterprises (SMEs).
Growth in outstanding corporate bonds moderate to a 4.7% growth, from a 5.5% growth in April.
The banking system recorded an aggregate liquidity coverage ratio of 150.4% in May, and a loan-to-fund ratio of 83.6% on sustained loan growth.
Gross impaired loans ratio rose to 1.5% in May from 1.4% in April.
Loan loss coverage ratio— including regulatory reserves— remained prudent at 128.9% of gross impaired loans.