Key View

• We expect Malaysia’s banking system to remain stable over the coming quarters as the banking sector boasts robust capital and liquidity buffers.
• However, we believe that the outlook for banks will likely deteriorate in 2023, amid a higher interest rate and slower growth environment.
• Non-performing loans will likely increase over the

Key View

• We anticipate upside risks to LNG supply due to projected increase in LNG production capacity additions.
• The outlook for Malaysia’s long-term gas production remains positive in line with the startup of offshore fields.
• The long-term outlook for the share of LNG in Malaysia’s gas consumption mix points to upside.
• Despite growing

Key View

• Recent refining capacity additions boosted Malaysia’s profile in regional refining market, making it the fourth largest refining centre in the South East Asia region.
• Malaysia’s refining industry landscape changed significantly since the RAPID refinery come online in 2022.
• Deepening refining and petrochemical integration enhances

Key View

• Malaysia is set to hold its next general election (GE15) on November 19, after the election commission announced the date on October 20.
• We expect that the Barisan Nasional coalition will win the most votes, and will most likely form the next government, but risks to our view are high given a significant likelihood of a hung

Key View

• We expect Malaysia’s banking system to remain stable over the coming quarters even as non-performing loans continue to rise.
• The banking system boasts high capital buffers and loan loss provisions which should underpin its resilience against future economic and financial shocks.
• We continue to expect credit growth to pick up to 5.0%

Key View

• At Fitch Solutions, we maintain our forecast for Bank Negara Malaysia to hike its Overnight Policy Rate by an additional 25bps to 2.75% by end-2022, after the central bank raised its benchmark rate by 25bps to 2.50% on September 8.
• We have revised up our average 2022 inflation forecast to 3.5%, from 3.3% previously, after inflation

Key View

• The use of price control measures for an increasing number of medicines will continue to challenge innovative drugmakers in Malaysia.
• However, despite price control measures the rising burden of chronic diseases will facilitate the rising demand for medicines – boosting the consumption of medicines in volume terms.
• Malaysia will

Key View

• FinTech will be increasingly pushed out to the rural regions of Malaysia, in a bid to promote the uptake of digital services in these areas. This is expected to benefit both consumers and enterprises among within rural populations.
• We believe that there are various opportunities for financial players to expand into rural market of

Key View

• We at Fitch Solutions expect Malaysia’s banking sector to remain stable over the coming quarters.
• Non-performing loans will likely pick up as support measures are gradually phased out amid the ongoing economic recovery, but robust capital buffers and loan loss provisions should underpin the resilience of the banking system.
• We have