Malaysia’s banking sector resilient amid tariff pressures, expected to hold steady in 2026


KUALA LUMPUR: Malaysia’s banking sector is ending 2025 on a firmer footing, charting steady loan growth, stable asset quality and sustained profitability despite a year clouded by global trade tensions, while the outlook for next year remains steady amid a diversified portfolio.

One of the most significant developments in the domestic financial landscape this year was the acquisition of Export-Import Bank of Malaysia (Exim Bank) and Small Medium Enterprise Development Bank (SME Bank) by Bank Pembangunan Malaysia Bhd in May 2025. 

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