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 11 months 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

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