Bank Negara Malaysia Reduces OPR to 2.75% - First Adjustment Since 2023
Bank Negara Malaysia’s Monetary Policy Committee (MPC) has decided to reduce the Overnight Policy Rate (OPR) by 25 basis points to 2.75%, lowering the ceiling and floor rates to 3% and 2.5%, respectively. This decision comes amid a global economic environment that continues to grow, supported by strong consumer spending, resilient labor markets, and fiscal stimulus. However, uncertainties such as geopolitical tensions and fluctuating trade policies pose potential risks to global financial stability and commodity prices. In Malaysia, economic activity remains robust, with continued growth expected in the second quarter, driven by strong domestic demand and steady exports. Employment and wage gains, particularly in domestic-oriented sectors, along with supportive policy measures, are sustaining household spending. Investments are also expected to grow, supported by public and private sector projects and strategic national initiatives. Export prospects may improve due to pro-growth global policies and sustained demand for key products like electrical and electronic goods. Inflation remains moderate, with headline and core inflation averaging 1.4% and 1.9% respectively in the first five months of 2025. With global cost pressures contained and domestic demand steady, inflation is expected to remain subdued. The ringgit’s performance will continue to be shaped by external factors, though Malaysia’s solid economic fundamentals and reforms offer support.
Date: July 9, 2025
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Malaysia’s Largest Affordable Housing Project Launched in Penang
SkyWorld Development Bhd, in partnership with the Penang Development Corporation (PDC) and its subsidiary PDC Properties, has announced Rumah Bakat Baru Madani, Malaysia's largest affordable housing project. The initiative, situated in Penang, will provide over 35,000 homes for the B40 and M40 income groups. This ambitious project aligns with the federal government’s target under the 12th Malaysia Plan to deliver 500,000 affordable homes by 2025.
The joint development agreement was signed on December 10, 2024, with Prime Minister Datuk Seri Anwar Ibrahim, Housing and Local Government Minister Nga Kor Ming, and Penang Chief Minister Chow Kon Yeow present. Prime Minister Anwar, expressing personal interest in the project due to his ties to Penang, emphasized expediting its commencement, targeting a groundbreaking ceremony within 45 days.
Dec. 10, 2024
Tags: Penang
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