OPR cut benefits MSMEs, says KUSKOP minister

KUALA LUMPUR: The Ministry of Entrepreneur Development and Cooperatives (KUSKOP) has expressed confidence that Bank Negara Malaysia’s (BNM) decision to lower the Overnight Policy Rate (OPR) will benefit micro, small and medium enterprises (MSMEs). Minister Datuk Ewon Benedick stated that the 25-basis-point reduction to 2.75 per cent will likely ease financial pressures on businesses. Speaking after officiating Wisma Co-Opbank Pertama (CBP), Ewon highlighted that the Monetary Policy Committee (MPC) also adjusted the OPR corridor ceiling and floor rates to 3 per cent and 2.5 per cent respectively. The OPR serves as a benchmark for interbank lending and influences consumer loan rates, meaning lower borrowing costs could spur business expansion. Ewon also addressed the upcoming 25 per cent import tariff by the US on Malaysian goods, effective August 1. He expressed hope that ongoing negotiations between both governments would mitigate adverse effects on MSMEs. “Discussions regarding the tariffs, still under negotiation, along with domestic initiatives, should continue supporting our entrepreneurs,“ he said. – Bernama