Forecast: Number of Commercial Bank Branches in Malaysia

From 2013 to 2023, the number of commercial bank branches per hundred thousand adults in Malaysia showed a general declining trend, starting at 10.97 and falling to 9.89. Notably, there was a sharp decline in 2020 by 11.01%, consistent with global disruptions during the COVID-19 pandemic. However, this was followed by a slight recovery in 2022 and 2023.

Year-on-year, the data revealed significant fluctuations: a sharp decrease in 2020 (-11.01%) followed by a notable increase in 2022 (+12.18%) and a modest rise in 2023 (+1.33%). Over the past five years, from 2018 to 2023, the CAGR was -0.69%, indicating a relatively mild average annual decline.

Looking ahead to future trends:

• Forecasted figures suggest a continued decline but at a slower rate, with a forecasted five-year CAGR of -0.33%.
• The focus will be on digital banking growth, influencing physical branch strategies.
• Economic recovery post-pandemic and technological adoption will be key factors to watch.