Banking & Plantation Sector in Doldrums

With slowing loan growth and stricter lending restrictions, Malaysia's banking sector is facing a tough period as it also copes with shrinking margins & higher costs. The local plantation sector is also weighted down by higher operational costs with higher levies imposed on foreign workers. It is also not expected to benefit greatly from the current surge in CPO prices as yields fall.  

 

Lee Tien Xiang weighs the growth catalysts & risks between these two sectors.