Moody’s Ratings maintained a "stable" outlook for Malaysia’s banking system, anticipating the country’s real GDP to expand by 4% to 4.5% in 2026, backed by resilient consumption and firm investment activity.
- System-wide credit growth is expected to hold around 5%, supported by a neutral monetary policy.
- The agency noted that while asset quality risks are broadly stable, banks' plans for higher dividends could pressure capital buffers.