Malaysia household loan approvals fall 10.4% in August

Household loan approvals in Malaysia fell 10.4% year-on-year in August 2026, extending July's 2.4% decline, according to Hong Leong Investment Bank. Overall loan growth edged up to 5.7% as business lending strengthened, while total loan applications reversed July's surge.

PETALING JAYA (Oct 2): Household loan approvals in Malaysia fell 10.4% year-on-year in August 2026, extending the 2.4% decline recorded in July, according to Hong Leong Investment Bank Bhd (HLIB), as reported by the New Straits Times on Oct 1.

The report said household borrowing and loan applications softened amid persistent cost-of-living pressures, while business lending remained firm. The household figures cover lending generally and should not be read as a separate measure of housing-loan demand.

HLIB said overall loan growth edged up to 5.7% year-on-year in August from 5.6% in July, supported by stronger business lending. Business loan growth accelerated to 8.0% from 7.6% previously, according to HLIB's figures cited in the report.

However, overall loan applications fell 0.3% year-on-year in August, reversing July's 17.2% increase. The decline in applications contrasted with the continued expansion in outstanding loans.