Malaysia

OPR cut to benefit Malaysian SMEs - Entrepreneur Minister

KUSKOP confident that lower borrowing costs will support growth and cash flow for micro, small, and medium enterprises amid ongoing US tariff concerns

Updated 1 year ago · Published on 10 Jul 2025 6:13PM

OPR cut to benefit Malaysian SMEs - Entrepreneur Minister
The 25-basis point Overnight Policy Rate reduction will ease financial pressures on businesses - July 10, 2025

THE Ministry of Entrepreneur Development and Cooperatives (KUSKOP) is confident that Bank Negara Malaysia’s recent cut in the Overnight Policy Rate (OPR) will bring positive effects for micro, small, and medium enterprises (SMEs) across the country.

Minister Datuk Ewon Benedick welcomed BNM’s announcement yesterday of a 25-basis point reduction in the OPR to 2.75 per cent, saying it would ease financial pressures on businesses.

“I am very confident this will have a positive impact on SME entrepreneurs,” he told reporters after officiating the opening of Wisma Co-Opbank Pertama (CBP) today.

Alongside the rate cut, the Monetary Policy Committee also adjusted the ceiling and floor rates of the OPR corridor to 3.0 per cent and 2.5 per cent respectively.

The OPR serves as a benchmark for interbank lending rates and typically influences the interest rates offered to consumers and businesses. A lower OPR often translates into cheaper borrowing costs, enabling businesses to expand operations and strengthen cash flow.

Commenting on the 25 per cent import tariff to be imposed by the United States on certain Malaysian goods starting 1 August, Ewon expressed hope that ongoing discussions between the Malaysian and US governments would offer continued support to local SMEs.

“Hopefully, the discussions regarding the tariff, which are still being negotiated with the US government, along with other domestic initiatives, will continue to support our SMEs so they can keep contributing to the national economy,” he said. - July 10, 2025

Spotlight

Malaysia

Sarawak schools told to halt outdoor activities as haze pushes air quality into unhealthy range

World

Indonesia haze forces schools to close as wildfires intensify amid severe dry season

Malaysia

PN walkout over Tabung Haji debate a political misstep, says analyst

By Alfian Z.M. Tahir

Malaysia

51 witnesses to testify at inquest into death of 10-year-old boy found unconscious in school toilet

Malaysia

Female student arrested for allegedly hurting classmate with kerambit at school

World

Colombia quake death toll hits 111 as rescue teams race to find survivors

World

Trump secretly switched to third aircraft in Türkiye over Iran assassination threat

Malaysia

Anwar questions PN’s priorities after Tabung Haji RCI walkout

Malaysia

MACC, police probing TH after RCI findings as govt warns no one will be spared

By Alfian Z.M. Tahir

You may be interested

Malaysia

Anwar files suit against PAS’ Tuan Ibrahim over claims of police intimidation, royal interference

Malaysia

Female student arrested for allegedly hurting classmate with kerambit at school

Malaysia

51 witnesses to testify at inquest into death of 10-year-old boy found unconscious in school toilet

Malaysia

PN walkout over Tabung Haji debate a political misstep, says analyst

By Alfian Z.M. Tahir

Malaysia

Sarawak schools told to halt outdoor activities as haze pushes air quality into unhealthy range

Malaysia

Guan Eng questions Penang PH's stance on UMNO

Malaysia

Thai officer involved in mid-air disturbance on Malaysia-Bangkok flight (video)

Malaysia

Syed Saddiq warns Tabung Haji bailout burden could fall on future generations