KUALA LUMPUR – The decision by Bank Negara Malaysia (BNM) to maintain the overnight policy rate (OPR) at 3.00% will not impact Malaysia’s trade at all as it is more affected by external factors, said Datuk Seri Tengku Zafrul Tengku Abdul Aziz.
The investment, trade, and industry minister said foreign investors in Malaysia would not make decisions that influenced their businesses by solely looking at the OPR movement.
However, the unchanged OPR level would impact on local investors as it would facilitate them in terms of planning their business direction as the financing cost would be unaffected.
“Investors will look at many factors which are not limited to the financing aspects such as infrastructure, ease of doing business, talent, and others.
“Foreign investors do not borrow much from local banks for their working capital… investors (who have financing with local banks) who are here in Malaysia will look at it positively,” he said.
He told reporters this after officiating Credit Guarantee Corporation Malaysia Bhd’s 28th Financial Institutions/Development Financial Institutions & SME Awards 2022 here, today.
BNM’s monetary policy committee (MPC) yesterday decided to maintain the OPR at 3.00%.
The central bank said that at the current OPR level, the monetary policy stance is slightly accommodative and remains supportive of the economy and the MPC continues to see limited risks of future financial imbalances.
The MPC remained vigilant to ongoing developments and will continue to monitor incoming data to inform the assessment on the outlook of domestic inflation and growth.
“The MPC will ensure that the monetary policy stance remains conducive to sustainable economic growth amid price stability,” said BNM in its monetary policy statement yesterday. – Bernama, July 7, 2023
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