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Country Report

Malaysia Flag Consumer Lending in Malaysia

| Pages: 12

Price: US$1,900

About this Report

EXECUTIVE SUMMARY

Consumer lending growth slows

Consumer lending recorded slower current value growth in both gross lending and outstanding balance terms in 2014. Malaysia’s household debt to GDP ratio stood at close to 89% as of 2013, thus forcing the Malaysian government to take further action to curb consumer lending during 2014. A further improvement in Malaysia’s economic conditions during 2014 also raised consumer disposable incomes and confidence. Consequently, consumers were also less reliant on consumer lending to finance their purchases.

New regulations to curb household debt accumulation

Bank Negara, the central bank of Malaysia, implemented new regulations in July 2013 to further curb household debt accumulation. New loan tenures were set for personal loans at 10 years instead of 25 while mortgages/housing loans are now allowed a maximum payback term of 35 years versus the previous 45 years. In addition, pre-approved personal financing products such as unsolicited loans were also banned. Consumers thus had to face a higher monthly repayment amount, forcing them to curb their reliance on consumer lending.

Local financial institutions lead consumer lending

Mainstream financial service providers continued to dominate consumer lending in 2014, despite a slight drop in value share. Stringent lending regulations implemented in 2012 saw some consumers turning to alternative financial service providers instead. The established presence of local financial institutions fuelled consumer trust and reliance on these companies for personal loans. On the other hand, foreign banks continued to intensify competition in card lending as they made promotional offers such as low interest rates to secure consumer credit card subscriptions.

Value share of non-performing loans declines

2014 witnessed a further pickup in economic conditions that lowered the unemployment rate and raised consumer disposable incomes, thus improving consumers’ overall ability to repay their loans. New limits on loan tenures implemented by Bank Negara in July 2013 also saw consumers becoming more conscious of their ability to repay their debts on a monthly basis, thus lowering the risk of bad debts. Education programmes implemented by the government to improve consumer financial literacy and management also improved consumers’ ability to cope with their debts and, in turn, lowered the value share of non-performing loans.

Consumer lending growth to slow further

Consumer lending is projected to slow in constant value terms over the forecast period. The Malaysian government is expected to heighten efforts to bring down consumer lending so as to reduce the risk of outstanding debts. Educating consumers on financial literacy and management will be one key development over the forecast period so as to minimise consumer reliance on lending and ensure repayment capacity. Increasing interest rates as well as cooling off measures for property and cars are also likely over the forecast period in a bid to reduce consumer lending.

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Overview

Discover the latest market trends and uncover sources of future market growth for the Consumer Lending industry in Malaysia with research from Euromonitor's team of in-country analysts.

Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.

If you're in the Consumer Lending industry in Malaysia, our research will save you time and money while empowering you to make informed, profitable decisions.

The Consumer Lending in Malaysia market research report includes:

  • Analysis of key supply-side and demand trends
  • Historic volumes and values
  • Five year forecasts of market trends and market growth  
  • Robust and transparent market research methodology, conducted in-country

Our market research reports answer questions such as:

  • What is the market size of Consumer Lending in Malaysia?
  • What are the major trends set to impact the market in Malaysia?
  • What capacity for consumer debt still exists in the market?
  • What’s the state of credit quality in the market?
  • Has the economic downturn reset the lender competitive landscape?

Why buy this report?

  • Gain competitive intelligence about market leaders
  • Track key industry trends, opportunities and threats
  • Inform your marketing, brand, strategy and market development, sales and supply functions

Euromonitor’s industry reports, including Consumer Lending in Malaysia, originate from our database within our Consumer Finance market share and market size database, Passport, a platform which analyses Consumer Finance in 46 countries and globally.

Table of Contents

Consumer Lending in Malaysia - Industry Overview

EXECUTIVE SUMMARY

Consumer lending growth slows

New regulations to curb household debt accumulation

Local financial institutions lead consumer lending

Value share of non-performing loans declines

Consumer lending growth to slow further

KEY TRENDS AND DEVELOPMENTS

Improved economic conditions in 2014 slow consumer lending

New regulations in July 2013 to curb consumer lending

Intensifying competition within consumer lending

MARKET DATA

  • Table 1 Consumer Lending: Outstanding Balance by Category: Value 2009-2014
  • Table 2 Consumer Lending: Outstanding Balance by Category: % Value Growth 2009-2014
  • Table 3 Consumer Lending: Gross Lending by Category: Value 2009-2014
  • Table 4 Consumer Lending: Gross Lending by Category: % Value Growth 2009-2014
  • Table 5 Consumer Lending: Non-performing vs Other Loans Outstanding Balance: % Value 2009-2014
  • Table 6 Mortgages/Housing: Non-performing vs Other Loans Outstanding Balance: % Value 2009-2014
  • Table 7 Consumer Credit: Non-performing vs Other Loans Outstanding Balance: % Value 2009-2014
  • Table 8 Card Lending: Non-performing vs Other Loans Outstanding Balance: % Value 2009-2014
  • Table 9 Forecast Consumer Lending: Outstanding Balance by Category: Value 2014-2019
  • Table 10 Forecast Consumer Lending: Outstanding Balance by Category: % Value Growth 2014-2019
  • Table 11 Forecast Consumer Lending: Gross Lending by Category: Value 2014-2019
  • Table 12 Forecast Consumer Lending: Gross Lending by Category: % Value Growth 2014-2019

SOURCES

  • Summary 1 Research Sources

Consumer Credit in Malaysia - Category Analysis

HEADLINES

TRENDS

COMPETITIVE LANDSCAPE

PROSPECTS

CATEGORY DATA

  • Table 13 Consumer Credit: Outstanding Balance by Category: Value 2009-2014
  • Table 14 Consumer Credit: Outstanding Balance by Category: % Value Growth 2009-2014
  • Table 15 Consumer Credit: Gross Lending by Category: Value 2009-2014
  • Table 16 Consumer Credit: Gross Lending by Category: % Value Growth 2009-2014
  • Table 17 Forecast Consumer Credit: Outstanding Balance by Category: Value 2014-2019
  • Table 18 Forecast Consumer Credit: Outstanding Balance by Category: % Value Growth 2014-2019
  • Table 19 Forecast Consumer Credit: Gross Lending by Category: Value 2014-2019
  • Table 20 Forecast Consumer Credit: Gross Lending by Category: % Value Growth 2014-2019

Segmentation

This market research report includes the following:

  • Consumer Finance
    • Consumer Lending
      • Consumer Credit
        • Card Lending
        • Auto Lending
        • Durables Lending
        • Education Lending
        • Home Lending
        • Other Personal Lending
      • Mortgages/Housing

Statistics Included

For each category and subcategory you will receive the following data in Excel format:

From Passport

  • Market Sizes
  • Consumer Credit by Type
  • Other Personal Lending by Type
  • Non-performing vs Others loans

Market size details:

  • Outstanding balance % growth
  • Outstanding balance local currency, USD, EUR, GBP, CHF, JPY
  • Outstanding balance per capita local currency, USD, EUR, GBP, CHF, JPY
  • Gross lending % growth
  • Gross lending local currency, USD, EUR, GBP, CHF, JPY
  • Gross lending per capita local currency, USD, EUR, GBP, CHF, JPY

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