COMMERCE Asset-Holding Bhd (CAHB) sees the possibility of a slower loans growth as the Iraq war and the Severe Acute Respiratory Syndrome (SARS) outbreak have put a brake on the gross domestic product (GDP) growth of the country.
Assessing the country's economic performance in the first quarter, CAHB group director Dr Rozali Mohamed Ali said there might be a “slight downward revision” on the GDP for the year. Consequently, the group's forecast for loan growth, which is based on the rule of thumb of 1.5 times of the annual GDP growth, was likely to be lower than earlier forecast.