S&P anticipates Malaysia’s GDP growth this year due to Islamic banking sector

PETALING JAYA: S&P Global Ratings has forecast Malaysian Islamic banks to grow at a compound annual growth rate of 6-8% over the five-year period of 2022-2026, which means local Islamic banks could account for close to 45% of the overall commercial banking loan book by the end of 2026, up from 37.5% in January 2022.

“That said, short-term headwinds may hinder the recovery in loan growth….