MARC Ratings has maintained the MARCWatch Developing status on its financial institution ratings on Kuwait Finance House (Malaysia) Berhad (KFH Malaysia). The MARCWatch placement, which has remained since 1 August 2024, followed KFH Malaysia’s 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.

Divestment of the bank’s retail and corporate financing portfolios remains ongoing, with the sale of the bulk of its non-performing retail portfolio completed in April 2026. Most of its corporate financing portfolio has been offboarded, with only a few non-performing accounts remaining. Further developments will be monitored through to the completion of the wind-down process.