KUALA LUMPUR (Jan 22) — Bank Negara Malaysia (BNM) has kept the Overnight Policy Rate (OPR) unchanged at 2.75%, reflecting confidence in the country’s economic resilience and a manageable inflation outlook.
The decision was announced following the first of six scheduled monetary policy reviews for the year and was widely anticipated by market analysts. According to the central bank, the current interest rate level remains supportive of economic activity while maintaining price stability.
BNM’s stance follows preliminary data indicating stronger-than-expected economic momentum in the final quarter of 2025, driven largely by improved performance in the services and manufacturing sectors. This positive backdrop has helped sustain domestic demand, including continued activity in commercial property in KL and office space in Bukit Jalil, where business expansion and leasing demand remain closely tied to economic confidence.
The central bank last adjusted the OPR in July 2025, when it implemented a 25-basis-point cut as a pre-emptive measure to safeguard growth prospects. For 2026, Malaysia’s economic growth is projected to moderate to between 4% and 4.5%, following an estimated 4.9% expansion in the previous year.
BNM noted that domestic demand will continue to be supported by household spending and investment activity, particularly from the ongoing rollout of multi-year infrastructure and development projects. Higher realisation of approved investments is also expected to support capital expenditure, benefiting sectors linked to industrial land in Selangor, industrial property in the Subang area, and factory developments in Puchong.
On the external front, the central bank highlighted continued strength in electrical and electronics (E&E) exports, alongside increased tourism receipts, as key contributors to growth. These factors provide additional support for logistics, warehousing and commercial assets across the Klang Valley.
However, BNM cautioned that the outlook remains subject to downside risks, including slower global trade activity and softer commodity production. At the same time, potential upside could emerge from stronger global growth, higher demand for E&E products and more robust tourism performance.
Inflation is expected to remain contained, supported by easing global cost pressures and stable commodity prices. According to BNM, these conditions should help maintain moderate domestic cost levels in the near term.
The decision to hold rates steady also comes as the interest rate gap between Malaysia and the United States continues to narrow, with the US federal funds rate now lower than a year ago.
The next Monetary Policy Committee meeting is scheduled for March 6, where policymakers will reassess economic conditions and financial stability developments.
