Encouraging loan growth of 4%-5.8% likely

Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid.

PETALING JAYA: Despite the tough operating environment and ongoing geopolitical risks, the local banking sector is poised to see an encouraging loan growth of between 4% and 5.8% this year, owing to a strong job market and recovery in global trade.

The country’s strong labour market, according to banking analysts and economists, is expected to strengthen and return to pre-pandemic levels this year, which would support consumer spending and loan growth.