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Financial Services Report Malaysia

  • ID: 2139135
  • Report
  • Region: Malaysia
  • 23 Pages
  • The Economist Intelligence Unit
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The Malaysian government regards the country's financial services industry as an important engine of economic growth. The country has well-developed institutions in both conventional and Islamic finance, but sophisticated market instruments, such as derivatives, remain underdeveloped. The authorities have put special emphasis on the Islamic-finance sector, which is most prominent in debt securities but also important in banking, insurance and fund management.

Weak capital expenditure and heavy household debt, equivalent to about 83% of GDP-one of the highest ratios in the region-will weigh on bank lending in the early part of the forecast period (2019-23). Credit growth will accelerate later as economic conditions improve. Sustained economic expansion will also spur growth in premiums for non-life insurance products, much of which will be driven by sales of durable goods (such as motor vehicles) and residential property.

A general election in May 2018 led to a massive upset, with the Barisan Nasional coalition that had ruled Malaysia for six decades losing power. The election was held following the scandal at 1Malaysia Development Berhad (1MDB)-a government fund run by the erstwhile prime minister, Najib Razak-involving allegations that nearly US$700m from 1MDB was deposited in Mr Najib's personal account. Despite pre-election indications that corruption was not a major issue, it appears to have driven voters on polling day, with the opposition Pakatan Harapan securing 45% of the votes to win a simple majority in parliament and form a new government. A year on, the coalition has been criticised for being slow to implement reforms and failing to protect the interests of majority ethnic Malay voters. This manifested itself in a loss of a state seat in a by-election in early March 2019.

Industry List: Asset management, Financial Services, Banking, Financial Services, Financial markets and instruments, Financial Services, Financial regulation, Financial Services, Financial Services, Financial Services, Insurance
Industry Codes (NAIC): 52
Industry Codes (SIC): 60
Note: Product cover images may vary from those shown
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Financial Services Report Malaysia

Overview

Banks

Insurers

Asset managers

Financial markets and instruments

Financial regulation
Overview
Regulatory watchlist

Monetary and currency policy: Monetary policy

Monetary and currency policy: Exchange rates

Malaysia at a glance

Fundamental indicators

Key contacts
Note: Product cover images may vary from those shown
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