In light of the recent announcement of the Overnight Policy Rate (OPR) during Bank Negara Malaysia’s recent Monetary Policy Committee (MPC) meeting on the 3rd of March 2022, Shylendra Nathan, Country Manager - iProperty.com.my, shares his views on this announcement.
“As expected, the Overnight Policy Rate (OPR) is maintained at 1.75% as the country’s economy continues to recover. This year will not only be a pivotal recovery year for Malaysia, but also an opportunity for many industries to reform. This is due to the fact that the vaccination rate in Malaysia is high amongst adults at more than 62% and at more than 24% for children. With a robust vaccination rate, Malaysia is on course for an economic upswing.
Furthermore, key industries such as property and tourism could likely see accelerated recoveries as Malaysia borders are anticipated to reopen in the second quarter of the year. With the new standard operating procedures (SOPs) for lifting restrictions, we hope to see returning international travellers to Malaysia.
Having said that, should Bank Negara Malaysia decide to increase the OPR in the near future, it should be done progressively, in line with current economic conditions. A gradual increase over a span of one (1) year will allow Malaysians to adapt to rising interest rates and better prepare their finances in anticipation of further economic recovery. Furthermore, it will give consumers ample time to enjoy a low-interest rate environment, opening up funds for essential needs such as household items and healthcare treatment.”