May loan growth picks up but headwinds persist

HLIB Research revised its loan growth forecast slightly lower to 5% to 5.5%.

PETALING JAYA: Following some sluggishness in previous months, loan growth in May saw improvement, accelerating to 5.3% year-on-year compared to a 5.1% increase in April.

May’s increase was driven by a pickup in business loan growth with stronger demand for working capital loans among non-small medium enterprises.