Malaysian Banks Likely More Cautious in 2H

Dow Jones
Jul 02

0153 GMT - Malaysia's banks are expected to adopt a more cautious stance in 2H, as higher inflation, geopolitical uncertainty and potential election-related risks weigh on lending demand, TA Securities analyst Li Hsia Wong says in a note. Household lending is expected to slow as rising living costs pressure consumers, while business loans will likely remain the main growth driver, supported by infrastructure, utilities and digital investment, she says. Wong cuts her 2026 loan-growth estimates to 5.3% from 5.7%. TA Securities maintains its neutral rating on Malaysia's banking sector, pegging Public Bank, Hong Leong Bank and Alliance Bank Malaysia as its top picks, due to their strong domestic-centric operations, niche strengths in small and medium enterprises financing, as well as strong asset quality. (yingxian.wong@wsj.com)

 

(END) Dow Jones Newswires

July 01, 2026 21:53 ET (01:53 GMT)

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