KUSKOP Welcomes OPR Reduction

KUALA LUMPUR, July 10 (Bernama) – The Ministry of Entrepreneur Development and Cooperatives (KUSKOP) is confident that Bank Negara Malaysia’s (BNM) decision to lower the Overnight Policy Rate (OPR) will have a positive impact on micro, small and medium enterprises (MSMEs) in the country.

Its Minister, Datuk Ewon Benedick, said KUSKOP welcomes BNM’s announcement yesterday on the 25-basis-point reduction in the OPR to 2.75 per cent.

“I am very confident this will bring positive outcomes for MSME entrepreneurs,” he told reporters after officiating  Wisma Co-Opbank Pertama (CBP) here today.

Along with the OPR cut, the Monetary Policy Committee (MPC) also reduced the ceiling and floor rates of the OPR corridor to 3 per cent and 2.5 per cent respectively.

The OPR is a benchmark interest rate for interbank lending and typically influences consumer loan interest rates.

A lower OPR generally encourages lower borrowing costs, thereby providing entrepreneurs and businesses more room to expand operations and strengthen cash flow.

On the 25 per cent import tariff to be imposed on Malaysia by the United States starting Aug 1, Ewon expressed hope that ongoing negotiations between the Malaysian and US governments will lead to continued support for MSMEs.

“Hopefully, the discussions regarding the tariffs, which are still under negotiation with the US government, along with other ongoing domestic initiatives, will continue to support our MSME entrepreneurs in contributing to the nation’s economy,” he said.

-- BERNAMA