After enjoying a good run in the last few years, players in Malaysia’s banking industry are bracing themselves for a tougher operating environment ahead, amid growing headwinds in the external environment and intensifying competition.
Additionally, a tighter regulatory regime with the introduction of the Financial Services Act (FSA) and Islamic Financial Services Act (IFSA) in July is expected to bring about a change for the industry.
China’s growth has slowed to 7% – 8% this year, from around 9% to 10% two years ago. Price bubbles are building up while bad loans and excessive lending are plaguing the banking sector. India, which has been growing above 7% in now projected to grow by just 4% in 2014.