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IFN UK Forum 2022

Economic recovery and improvements in profitability support stable outlook

Our outlook for Malaysia's banking system remains stable, underpinned by improvements in the operating environment and profitability. Uncertainty around global macroeconomic conditions increased due to the military conflict between Russia and Ukraine, but we do not expect it to have a significant direct impact on Malaysian banks as they have limited exposures to these two countries. Leading indicators, such as the Purchasing Managers' Index and retail sales signal a strong recovery in the Malaysian economy. We expect real GDP growth....

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