KUALA LUMPUR (Nov 6, 2025) — Bank Negara Malaysia (BNM) has maintained the Overnight Policy Rate (OPR) at 2.75% during its final monetary policy meeting of the year, as the central bank struck a balanced stance between supporting growth and managing inflation.
The decision — anticipated by all economists surveyed in a Bloomberg poll — reflects BNM’s confidence in Malaysia’s steady economic momentum, supported by resilient domestic demand, improving exports, and contained price pressures.
The OPR has remained unchanged since July 2025, when the central bank unexpectedly reduced the rate by 25 basis points, calling it a “pre-emptive measure” to sustain growth amid global uncertainties.
“The current rate remains appropriate and supportive of the economy, consistent with price stability,” BNM said in a statement on Thursday.
Malaysia’s economy expanded more strongly than expected in the most recent quarter, underpinned by household spending, robust electronics exports, and recovering commodity output.
BNM expects domestic demand to remain the key growth driver into 2026, aided by employment gains, wage growth, and income-supporting government initiatives. Investment activity is also poised to strengthen, supported by:
Multi-year private and public sector projects,
The realisation of approved investments, and
Ongoing programmes under the 13th Malaysia Plan and various national master plans, including infrastructure and industrial expansion initiatives.
These efforts — reinforced by Budget 2026 measures — are expected to spur growth across key sectors such as industrial land in Selangor, commercial properties in KL, and industrial hubs in the Subang area.
BNM noted that while the global economic outlook has improved modestly, external risks remain. Weaker global trade activity, geopolitical tensions, and softer commodity output could weigh on Malaysia’s exports and business sentiment.
Nevertheless, upside potential exists through stronger electronics demand, firmer tourism recovery, and continued resilience in manufacturing and logistics, particularly across factories in Puchong and office developments in Bukit Jalil, where occupier demand has remained healthy.
Official forecasts project Malaysia’s GDP growth at 4.0%–4.8% in 2025 and a steady 4.0%–4.5% in 2026, maintaining a sustainable pace supported by policy stability and private sector investment.
Headline inflation continues to ease amid stable commodity prices and fading global cost pressures, while core inflation remains near its long-term average, indicating balanced growth without overheating.
BNM expects inflation to remain moderate into 2026, with limited impact from domestic policy reforms or subsidy adjustments.
“Economic activity remains on a firm footing, and price pressures are contained,” the central bank noted, adding that current monetary conditions are adequate to support sustainable expansion.
With the policy rate remaining unchanged, analysts expect borrowing costs to stay attractive for homebuyers, developers, and investors — a positive signal for Malaysia’s commercial and industrial property markets.
Low interest rates are likely to continue supporting activity across:
Commercial property in KL, where leasing demand for office and retail space remains steady;
Industrial land in Selangor and Subang, where infrastructure-led projects are expanding; and
Factories in Puchong and logistics corridors, which continue to attract local and foreign investors.
Overall, BNM’s stable monetary stance reinforces a favourable environment for long-term investment and development across Malaysia’s property and industrial sectors.
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