KUALA LUMPUR, Aug 28 — The local banking sector’s growth is expected to remain moderate next year in line with the country’s economic performance, said Hong Leong Bank Bhd (HLB) group managing director and chief executive officer, Domenic Fuda.
“A healthy labour market and an anticipated pick-up in investment spending following the revival of numerous major infrastructure projects are expected to help underpin domestic demand.
“This will help negate some of the fallouts from a softer external environment possibly still mired in spillover effects from the geopolitical tensions currently impacting global trade,” he told a press conference on the bank’s performance for the financial year ended June 30, 2019 here, today.
Moreover, Fuda pointed out that Bank Negara Malaysia had taken some pre-emptive steps, including the overnight policy rate cut in May 2019 to grow the economy.
“The 4.7 per cent gross domestic product (GDP) growth in the second quarter is quite solid and it will continue (to do well),” he said, adding that he expected GDP growth to be at between 4.5 and five per cent next year.
On the possibility of an OPR cut in November, he said the bank was of the view that there was a 50-50 per cent chance of that happening.
“If there is one, it is probably one of pre-emptive (steps), and it could be a reflection of what’s been happening overseas,” Fuda said.
Meanwhile, he said HLB remained steadfast in becoming a digital highly digital and innovative Asean financial services institution.
“We should continue to see growth opportunities in the coming year, while we maintain our efforts to revamp our cost structure through a pervasive digital transformation to achieve sustainable growth,” he added. — Bernama
