Malaysia’s private non-financial sector loans up 5.2% in Dec 2024

Business loan growth moderated although SME loan growth was “sustained.”

Loans extended by Malaysian lenders to the private non-financial sector grew by 5.2% in December 2024, according to data from the Bank Negara Malaysia (BNM).

Household loan growth was at 5.9% during the month, with broadly steady growth in loans across different purposes, the central bank said in a report on 31 January 2025.

Growth of business loans moderated during the month, following slower loan growth among non-small and medium enterprises (SMEs).

SME loan growth remained “broadly sustained”, according to BNM, with continued increase in growth of loans for investment-related purposes.

The banking system’s aggregate Liquidity Coverage Ratio (LCR) is 160.7%.

The aggregate loan-to-fund ratio was 83.5%.

Overall gross impaired loans continued to decline, improving to 1.4% in December from 1.5% in November 2024.

Net impaired loans ratio remained stable at 0.9%.