Kuala lumpur: Credit to the private non-financial sector saw a growth of 5.8 percent in April 2026, rising from 5.6 percent in March 2026, driven by an increase in outstanding business loans and corporate bonds, according to Bank Negara Malaysia (BNM).

According to BERNAMA News Agency, the central bank reported that business loan growth accelerated to 6.3 percent in April 2026 from 5.7 percent previously. This was accompanied by an increase in the growth of outstanding corporate bonds, which rose to 6.1 percent from 5.8 percent. Business loan growth was primarily fueled by higher loan growth among non-small and medium enterprises (SMEs), particularly for working capital purposes. Growth in investment-related loans continued to be observed across both SMEs and non-SMEs.

Household loan growth remained steady at 5.5 percent in April 2026, slightly up from 5.4 percent in March 2026, with loan growth consistent across most purposes. BNM stated that asset quality remained stable, with gross and net impaired loans ratios holding steady at 1.4 percent and 0.9 percent, respectively. The loan loss coverage ratio, including regulatory reserves, was maintained at a prudent 125.4 percent of gross impaired loans.

Furthermore, BNM noted that the Malaysian ringgit appreciated by 1.7 percent against the US dollar, buoyed by net foreign inflows into the domestic bond and equity markets. The 10-year Malaysian Government Securities (MGS) yield decreased by six basis points, while the FBM KLCI increased by 1.9 percent in April 2026.