Malaysia’s banks log 5.3% loan growth in May with construction boost

This was offset by a slight decelration in working capital loans, said UOB Kay Hian.

Malaysia’s banking sector is expected to log a loan growth of 5%–6% for the whole of 2025, according to UOB Kay Hian (UOBKH).

Loan growth improved to 5.3% in May 2025, from 5.1% in April, driven by stronger construction loans.

Construction loans grew 3.7% year-on-year (YoY) during the month of May compared to just 1.9% in April.

This was offset by a “slight deceleration” in working capital loans growth. This resulted in stronger overall business loans growth of 4.4% YoY.

Household loan growth softened to 5.8% YoY in May from 5.9% YoY in April, on slower mortgage loans.

Auto loans remained steady at 7.2% YoY.