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KUALA LUMPUR: Net growth in financing increased slightly to 7.3% in November (7.1% in October), mainly due to the stronger growth of outstanding banking system loans of 6, 2% (6.0% in October), said Bank Negara Malaysia (BNM).
The central bank said that corporate financing remained solid, with more growth in outstanding loans of 6.3% (October: 5.6%), driven mainly by wholesale trade and retail, restaurants and hotels; construction and manufacturing sectors.
"Growth in corporate bonds outstanding remained healthy at 10.5% (October: 10.2%) and loans to households edged down to 5.7% (October: 5 , 9%), "said the group in a statement.
The quality of banking system assets remains healthy, improving the quality of bank assets having been marginal. However, the ratio of net impaired loans remained unchanged at 0.9%.
Banks also maintained sufficient reserves against potential credit losses, with the ratio of provisions to total loans being maintained at 1.5%.
At the same time, headline inflation fell to 0.2% in November (0.6% in October), mainly due to transport inflation, which reflected the base effect.
"Excluding the impact of changes in the consumption tax, core inflation remained broadly stable at 1.6% (October: 1.5%)," adds the text.
Export growth reached 17.7% in October due to strong growth in exports of manufactured goods and commodities.
"In the future, export growth should see more moderate growth, along with the slowdown in global business activity and the normalization of re-exports," said the central bank.
Meanwhile, domestic financial markets remained in order despite the ongoing portfolio exit.
"In November, domestic financial markets continued to record portfolio outflows from non-residents, mainly due to uncertainties related to external developments," the central bank said.
BNM said that the ringgit had depreciated by 0.1% due to portfolio outflows from non-residents, mainly because of investors' risk feelings aroused by concern over the lack of interest. escalating global trade tensions and by expectations of a future rise in interest rates in the United States.
Kuala Lumpur's FBM Composite Index fell 1.7% due to non-resident outflows of RM 0.7 billion, as investors remain cautious about continued volatility in global equity markets and lower prices crude oil.
At the same time, the yield on Malaysian government bonds over five years remained stable despite outflows of RM 5.4 billion for non-residents, a slight increase of 7.3 basis points. .
"The impact of capital outflows remained contained because of the active purchases made by domestic institutional investors," added Bernama.
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