Consumers took advantage of the GST-free period to buy cars.
Malaysian banks loan growth picked up at a faster-than-expected pace in July after rising from 5% in June to 5.3% in July, according to Maybank Kim Eng.
Car loans, in particular, drove lending gains as consumers took advantage of cheaper car prices brought about by the tax free period from June 1 to August 31.
Auto loan applications correspondingly surged from 14.6% in June to 24.2% in July on a 3-mont moving average basis.
Residential property lending also remained strong at 8.3% YoY although non-residential property lending tapered off slightly from 2.6% in June to 2.4% in July.
Household (HH) loan growth picked up pace from 5.8% in June to to 6.0% in July along with non-HH loan growth which rose from 4.1% to 4.3% over the same period.
In a breakdown, share margin financing and personal loans which grew 7.7% in July drove HH lending gains whilst an improvement in working capital loan growth from 2.3% to 2.9% in July amidst strong lending to manufacturing, utilities, wholesale/retail and construction boosted performance on the non-HH front.
Do you know more about this story? Contact us anonymously through this link.