KUALA LUMPUR, July 9, 2025 — In a significant monetary policy move,
Bank Negara Malaysia (BNM) has reduced the
overnight policy rate (OPR) by
25 basis points, lowering it from 3.00% to
2.75%, the first cut in five years. The corridor ceiling and floor rates have also been adjusted to
3.00% and 2.50% respectively
The Edge Malaysia+3Hong Leong Bank+3RinggitPlus+3.
BNM justified the decision as a pre-emptive measure to support growth amid slowing global trade conditions and moderate inflation averaging around
1.2% year over year in June Reuters+1The Edge Malaysia+1.
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What This Means for Business Borrowers
Following the OPR cut, leading financial institutions have moved swiftly to adjust their reference rates:
Maybank
Hong Leong Bank / Hong Leong Islamic
RHB Bank
Bank Islam
Public Bank
CIMB Bank
Alliance Bank
OCBC Bank Malaysia
- SBR: 2.75%
- BR: 3.58%
- BLR: 6.51%
- Effective 15 July 2025 OCBC Bank
HSBC Malaysia
- SBR: 2.75%
- BR: 3.39%
- BLR / BFR: 6.49%
- Effective 17 July 2025 HSBC Malaysia
π Summary Table of New Lending Rates
| Bank |
SBR |
BR / IBR |
BLR / BFR |
Effective Date |
| Maybank |
2.75% |
2.75% |
6.40% |
11 Jul 2025 |
| Hong Leong Bank |
2.75% |
3.63% |
6.64% |
14 Jul 2025 |
| RHB Bank |
2.75% |
3.50% |
6.45% |
Mid-Jul 2025 |
| Bank Islam |
2.75% |
3.52% |
6.47% |
Mid-Jul 2025 |
| Public Bank |
2.75% |
3.27% |
6.47% |
Mid-Jul 2025 |
| CIMB Bank |
2.75% |
3.75% |
6.60% |
14 Jul 2025 |
| Alliance Bank |
2.75% |
3.57% |
6.42% |
15 Jul 2025 |
| OCBC Bank Malaysia |
2.75% |
3.58% |
6.51% |
15 Jul 2025 |
| HSBC Malaysia |
2.75% |
3.39% |
6.49% |
17 Jul 2025 |
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What It Means for SME Financing
- Lower borrowing costs: SMEs with floating-rate loans tied to BLR or BFR may see a direct reduction in interest costs, easing monthly repayments.
- Improved cash flow management: Reduced rates offer breathing space for reinvestment or operations.
- Strategic refinancing opportunity: If you hold retail or SME loans structured under old reference rates, now is a good time to explore refinancing.
- Savings implications: While lending rates have fallen, fixed deposit and investment returns are likely to decrease, so businesses should evaluate yield-generating options carefully.
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How Billion Advisory Can Help
At Billion Advisory Sdn Bhd, we are committed to guiding SME owners through evolving macroeconomic landscapes:
- Analyzing how new OPR and BLR adjustments impact your current financing.
- Advising on refinancing, cash flow projections, and interest cost optimization.
- Helping freeze costs or lock-in attractive rates when beneficial.
- Strategizing financial planning to match changing market dynamics.
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Malaysia