Kuala lumpur: The Ministry of Entrepreneur Development and Cooperatives (KUSKOP) is confident that Bank Negara Malaysia’s (BNM) decision to lower the Overnight Policy Rate (OPR) will have a positive impact on micro, small and medium enterprises (MSMEs) in the country. Its Minister, Datuk Ewon Benedick, said KUSKOP welcomes BNM’s announcement yesterday on the 25-basis-point reduction in the OPR to 2.75 per cent.

According to BERNAMA News Agency, Datuk Ewon Benedick expressed his confidence that the reduction would bring positive outcomes for MSME entrepreneurs. He made this statement to reporters after officiating Wisma Co-Opbank Pertama (CBP) today. Along with the OPR cut, the Monetary Policy Committee (MPC) also reduced the ceiling and floor rates of the OPR corridor to 3 per cent and 2.5 per cent respectively.

The OPR serves as a benchmark interest rate for interbank lending and typically influences consumer loan interest rates. A lower OPR generally encourages lower borrowing costs, thereby providing entrepreneurs and businesses more room to expand operations and strengthen cash flow.

On the 25 per cent import tariff to be imposed on Malaysia by the United States starting August 1, Ewon expressed hope that ongoing negotiations between the Malaysian and US governments will lead to continued support for MSMEs. He mentioned that discussions regarding the tariffs are still under negotiation and, along with other ongoing domestic initiatives, will continue to support MSME entrepreneurs in contributing to the nation’s economy.