Moody's sees stable outlook for Malaysia's banking sector

KUALA LUMPUR: Moody's Investors Service says the outlook for Malaysia's banking system in the next 12 to 18 months is stable while it expects GDP to expand at a slower pace of 4% this year from 5.1% last year.

A Moody's analyst, Simon Chen said on Thursday the Malaysian government's expansionary policies would support credit growth, despite a slowing economy due to lower demand for exports from the country's main trading partners -- the US, Europe and China.