PETALING JAYA: Overall loan growth is projected to grow by 5.7% in 2026, supported by expansion of 5.8% in consumer lending and 5.5% in business loans, according to TA Research. The research house said banks should also remain broadly optimistic about the small and medium enterprise (SME) segment, which continues to outpace system loan growth. Malaysia’s largest lender Malayan Banking Bhd (Maybank) has projected renewed SME capital expenditure cycles would support loan growth. In 2026, the research house expects banks to continue making deliberate pivots toward high-yield and unsecured lending, with growth strategies increasingly centred on high-margin unsecured products as well as quality residential mortgages. HLBB, which delivered significant gains in unsecured lending during the first quarter of financial year 2026, is also well-positioned to maintain this trajectory into 2026.

Source: The Star January 01, 2026 17:36 UTC