PETALING JAYA: Bank Negara Malaysia’s (BNM) Monetary Policy Committee (MPC) today slashed its Overnight Policy Rate (OPR) by 25 basis points to 3%.
The move is seen by many as a proactive measure to address an economy which is slowing.
Malaysia’s economy grew by 4.7% in 2018 and the government maintains an official growth projection of 4.9% in 2019. However, actual growth could disappoint as the economy faces numerous external headwinds and high debt levels.
One of the most critical external factors which the Malaysian economy is facing currently is the impact of the trade impasse between the US and China. Commodity prices such as palm oil are also on the downtrend and this has a telling effect on the economy as palm oil contributes 5% to 6% of the nation’s GDP.