MARC Ratings has maintained the MARCWatch Developing status on Kuwait Finance House (Malaysia) Berhad (KFH Malaysia), where it has remained since 1 August 2024 following the announcement of its voluntary withdrawal from the Malaysian market and planned wind-down of operations, in alignment with KFH Group’s strategic focus on the Middle East.

Progress on the divestment of the bank’s retail and corporate financing portfolios continues, with the wind-down process targeted for completion by 2Q2027. The sale of its non-performing retail portfolio was completed in April 2026, while a residual second tranche is pending the sale of its performing retail portfolio, which is progressing through the near-final stages of completion. Most of its corporate financing portfolio has also been offboarded, with only a few accounts remaining. Further developments will be monitored through to the completion of the wind-down process.