Table of Contents

COVID-19 Update

Impact Assessment

Retail Deposits

Total Consumer Loans

Mortgage Loans

Credit Card Loans

Other Consumer Loans

Appendix

Supplementary Data

Definitions

Methodology

About GlobalData

Contacts

Retail Banking in Malaysia: Coronavirus (COVID-19) Sector Impact

Summary

The Coronavirus (SARS-CoV-2) outbreak, dubbed COVID-19, is first and foremost a human tragedy, affecting millions of people globally. The contagious Coronavirus, which broke out at the close of 2019, has led to a medical emergency across the world, with the World Health Organization officially declaring the novel Coronavirus a pandemic on March 11, 2020.

Fears surrounding the impact of COVID-19 have already significantly impacted the global economy, with key markets across the world losing 20-50% of their value for the year-to-date. Many economists and institutions have cut their forecasts, with consensus global GDP growth currently at 2.6% for 2020 and many experts predicting the potential onset of recessionary environments.

A similar trend is expected in Malaysia. Economic growth in the country is set to have dipped in the first quarter of 2020 and will decelerate further if the disease is not controlled at the earliest possible opportunity. This will have an adverse impact on all sectors, including banking and payments.

This report focuses on the impact of the Coronavirus outbreak on the economy and the retail banking industry in Malaysia. Based on our proprietary datasets, the snap shot provides a detailed comparison between pre-COVID-19 forecasts and revised forecasts of total mortgage, consumer, credit card loan balances as well as deposit balances in terms of value and growth rates. It also offers information on measures taken by the government to combat Coronavirus.

Scope

- Like most countries across the world, Malaysia is on track for a sharp recession as COVID-19 is having a major impact on the local economy. The IMF expects real GDP to contract by 1.7% in 2020 compared to 2019, which will directly affect the country’s banking sector.
- Banks could see a rise in the delinquency rate, resulting in higher non-performing loans as retail customers and small businesses are more vulnerable to disruption from COVID-19. To curb this issue and to protect both consumers’ and lenders’ interests, Malaysian banks are extending support to their customers.
- For instance, on March 20 United Overseas Bank announced a number of relief measures for both individual and business customers affected by Coronavirus. These include the deferment of payments for up to six months on personal loans, mortgages, and credit cards.

Reasons to Buy

- Make strategic decisions using top-level revised forecast data on the Malaysian retail lending and deposit industry.
- Understand the key market trends, challenges, and opportunities in the Malaysian retail lending and deposit industry.
- Receive a comprehensive insight into the total consumer loans in Malaysia, including mortgages, personal and credit card loans as well as retail deposits balances.