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

• Standardised Base Rate (SBR): 2.75%
• Base Rate (BR): 2.75%
• Base Lending Rate (BLR) / Base Financing Rate (BFR): 6.40% (down from 6.65%)
• Effective from 11 July 2025 Alliance Bank+8Maybank2u+8
  The Edge Malaysia+8The Edge Malaysia+2Alliance Bank+2Hong Leong Bank+2

Hong Leong Bank / Hong Leong Islamic

• SBR: 2.75%
• BR / IBR: 3.63% (from 3.88%)
• BLR / IFR: 6.64% (from 6.89%)
• Effective 14 July 2025 Alliance Bank+14The Edge Malaysia+14CIMB Malaysia+14

RHB Bank

• SBR / BR: 2.75% / 3.50%
• BLR / BFR: 6.45% (down from 6.70%)
• Effective mid July 2025 The Edge Malaysia+4The Edge Malaysia+4HSBC Malaysia+4

Bank Islam

• SBR: 2.75%
• BR: 3.52%
• BFR: 6.47%
• Effective mid July 2025 Hong Leong Bank+4The Edge Malaysia+4Alliance Bank+4

Public Bank

• SBR: 2.75%
• BR: 3.27% (from 3.52%)
• BLR / BFR: 6.47% (from 6.72%)
• Effective mid July 2025 Free Malaysia Today+14The Edge Malaysia+14CIMB Malaysia+14

CIMB Bank

• SBR: 2.75%
• BR: 3.75%
• BLR / BFR: 6.60%
• Effective 14 July 2025 bankofchina.com.my+2The Edge Malaysia+2Alliance Bank+2Alliance Bank+2bankofchina.com.my+2Hong Leong Bank+2
  HSBC Malaysia+4CIMB Malaysia+4Alliance Bank+4

Alliance Bank

• SBR: 2.75%
• BR: 3.57%
• BLR: 6.42%
• Effective 15 July 2025 The Edge MalaysiaAlliance Bank+1The Edge Malaysia+1

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

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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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