What is the effect of SVB crisis on Malaysia?


 This week there was a lot of talk here and there about the issue of the collapse of banks in the United States, especially Silicon Valley Bank (SVB), so much so that some are worried that the impact will reach Malaysia.

Malaysians may not need to worry because Economy Minister Rafizi Ramli said the crisis is not expected to cause any direct impact on companies in the country.

However, if this fall affects US banking more broadly and the capital market, he said that Malaysia may be hit by a small 'tempias'.

Meanwhile, Malacca Securities Sdn Bhd's senior analyst, Kenneth Leong is also of the view that the crisis will have little or no impact.

He said, there may be some indirect effects as banks will be more cautious after this issue or may lead to tightening of lending and margin policies regarding the crypto market.

In the meantime, Rakuten Trade Sdn Bhd's vice president of equity research, Thong Pak Leng, expects Bursa Malaysia to receive some impact from the crisis but there is nothing to worry about, because the US banking system is different from this country.

Although the issue is not seen to have an impact on the country, the sentiment in local bank stocks is seen to be gloomy due to investors' worries about the situation in the US.

At the time of writing, Maybank recorded a loss of around 0.7% at RM8.38, Public Bank Berhad was down 2.49% at RM3.91, CIMB was down 2.25% at RM5.21 and RHB Bank was down 1.95% at RM5.51.