Tag: Bank Negara Malaysia

BNM expected to maintain OPR at current level throughout the remainder of 2026

\According to HSBC Global Investment Research, BNM made a small but significant change in its statement when it clarified its monetary policy stance as “consistent” with the current outlook, from “supportive”. However, the HSBC branch still believes that BNM is likely to maintain the rate for the remainder of this year. HSBC Senior ASEAN Economist Yun Liu said BNM also changed its language on inflation by expecting inflation to "increase slightly" from "remaining moderate", reflecting concerns over domestic cost pressures stemming from high global commodity prices. "Malaysia is in a more resilient position compared to other regional countries because Malaysia is a net exporter of energy. This does not mean that Malaysia will be protected from energy shocks, however, the impact is expected to be smaller compared to other Asian economies," he said in a research note. According to RHB Investment Bank Bhd, monetary policy will continue to be data-driven, guided in particular by growth prospects and inflation trends, while strong economic fundamentals and continued subdued inflation support a broadly stable policy stance. The investment bank maintained its 2026 Gross Domestic Product (GDP) growth forecast at 4.7 percent, but expected a continued rise in oil prices to US$140 per barrel could reduce Malaysia's growth prospects by between 0.5 and one percentage point. Meanwhile, CIMB Treasury and Market Research is of the view that BNM's latest statement contains a clearer acknowledgement that rising energy prices and supply chain disruptions due to conflicts in West Asia have begun to affect global growth momentum. According to him, the central bank continues to view current inflationary pressures as largely supply-driven and temporary, thus reinforcing expectations for the OPR to be maintained for a longer period than the initial tightening. CIMB also explained that Malaysia's direct trade exposure to Gulf Cooperation Council countries, Iran and Iraq remains moderate at around 1.5 to 2.0 percent of total exports. This suggests the overall impact is expected to occur through commodity prices and global demand flows rather than direct trade disruptions, he added. MBSB Investment Bank Bhd also maintained its expectation that the OPR would remain set at that rate this year, supported by resilient domestic growth, positive labour market conditions, continued investment activity and continued demand for electrical and electronics exports. The investment bank warned, however, that prolonged geopolitical conflict could cause global energy prices to remain high and could lead to an inflation outlook "high for an extended period" for the rest of the year. "Therefore, government policy measures, particularly fuel subsidies and targeted interventions, will be important in curbing the possibility of increasing inflationary pressures," he added. BNM's Monetary Policy Committee (MPC) meeting on Thursday decided to maintain the OPR at 2.75 percent. The rate has not changed since a 25 basis point cut in July 2025. In a statement yesterday, the central bank explained that at the current OPR level, the MPC believes the monetary policy stance is appropriate and consistent with the prospects of continued price stability and sustainable economic growth.

KUALA LUMPUR: The decision on the Overnight Policy Rate (OPR) being maintained at the current level of 2.75 percent on Thursday reinforced expectations that Bank Negara Malaysia (BNM) may keep the rate unchanged for the remainder of 2026. The expectation comes despite investment banks and research arms warning that prolonged geopolitical tensions and high oil […]

Ringgit opens higher, expected to continue rising if OPR remains at 2.75 percent

KUALA LUMPUR -- The ringgit continued yesterday's momentum as it opened higher on Thursday amid expectations that the local currency has the potential to continue to rise today. Market consensus is that Bank Negara Malaysia (BNM) is expected to maintain the Overnight Policy Rate (OPR) at 2.75 percent. At 8am, the local currency was trading at 3.905/9300 against the US dollar from 3.9230/9275 at the close on Wednesday. BNM will hold its third Monetary Policy Committee meeting today, with market players expecting the OPR to remain unchanged at 2.75 percent pending an updated assessment of Malaysia's inflation and growth prospects. Bank Muamalat Malaysia Bhd Chief Economist Mohd Afzanizam Abdul Rashid said the ringgit's performance was also driven by increased risk appetite after the United States (US) and Iran were expected to be ready to reach an agreement and reopen the Strait of Hormuz. "Risk appetite increased significantly with the S&P 500 and Nasdaq jumping 1.46 percent and 2.02 percent respectively in a day to close at 7,365.12 points and 25,838.94. "US Treasury yields for two-year and 10-year terms declined by eight basis points to 3.87 per cent and 4.35 per cent respectively," he told Bernama . The US Dollar Index (DXY) decreased 0.43 percent to 98.023 points. Mohd Afzanizam said in this regard, the ringgit has the potential to continue strengthening today with BNM expected to maintain the OPR at 2.75 percent. "The US dollar-ringgit pair today is expected to move towards the RM3.90 level," he said. At the opening of trading, the ringgit traded higher against a basket of major currencies. The local unit strengthened against the euro to 4.6058/6170 from 4.6189/6242 at Wednesday's close, rose against the British pound to 5.3280/3409 from 5.3443/350 and rose against the Japanese yen to 2.5046/5109 from 2.5159/5191 yesterday. Local currencies are also mostly high compared to regional currencies. The local unit rose against the Singapore dollar to 3.0909/0986 from 3.0946/0986 at Wednesday's close and strengthened against the Thai baht to 12.1536/1898 from 12.1866/2074. The ringgit traded little changed against the Indonesian rupiah to 225.4/226.1 from 225.6/225.9 previously, and remained unchanged against the Philippine peso at 6.39/6.41.

KUALA LUMPUR — The ringgit continued yesterday’s momentum as it opened higher on Thursday amid expectations that the local currency has the potential to continue to rise today. Market consensus is that Bank Negara Malaysia (BNM) is expected to maintain the Overnight Policy Rate (OPR) at 2.75 percent. At 8am, the local currency was trading […]

BNM Fined Bank Rakyat RM1 Million Over Cybersecurity Breaches

KUALA LUMPUR, Jan 26 — Bank Negara has imposed a RM1 million administrative monetary penalty on entity-accent entity-underline inline cursor-pointer align-baseline Bank Kerjasama Rakyat Malaysia Berhad(Bank Rakyat) for failing to meet required cybersecurity and customer data protection standards. The central bank said the penalty, imposed on Jan 20, 2026, followed the discovery of multiple breaches under its Risk Management in Technology Policy Document (RMiT PD) and Management of Customer Information and Permitted Disclosures Policy Document (MCIPD PD). The violations were uncovered after a cybersecurity incident in which an external threat actor gained unauthorised access to the bank’s IT infrastructure. Investigations found that the breaches stemmed from inadequate cybersecurity controls and weaknesses in incident response. BNM said Bank Rakyat failed to implement robust cybersecurity measures and did not sufficiently safeguard customer information as required under regulatory guidelines. The bank has since taken remedial steps to strengthen its cybersecurity framework, including improvements to its information and communication technology (ICT) controls, resources and governance. In determining the penalty, BNM considered several factors, including the severity of the breaches, the bank’s lack of reasonable care in ensuring compliance, its existing control environment, past compliance record, and actions taken after the incident to prevent recurrence. Bank Rakyat paid the RM1 million penalty on Jan 26, 2026. BNM reiterated that all financial institutions must comply with its technology risk management and customer information policies, warning that it will take firm supervisory and enforcement action against any institution that fails to meet regulatory requirements.

KUALA LUMPUR — Bank Negara has imposed a RM1 million administrative monetary penalty on Bank Kerjasama Rakyat Malaysia Berhad(Bank Rakyat) for failing to meet required cybersecurity and customer data protection standards. The central bank said the penalty, imposed on Jan 20, 2026, followed the discovery of multiple breaches under its Risk Management in Technology Policy […]

BNM to pay RM5 billion in dividends to government, total assets RM602.22 billion

"BNM's liabilities consist primarily of currency in circulation (2025: RM177.75 billion; 2024: RM170.72 billion) and deposits by financial institutions (2025: RM118.06 billion; 2024: RM131.92 billion)," said BNM in its 2025 Annual Report released today. For the financial year ended Dec 31, 2025, BNM recorded a net profit of RM12.45 billion (2024: RM13.16 billion), following total income of RM14.35 billion (2024: RM14.98 billion), after deducting costs related to reserve portfolio management and monetary operations. In 2025, BNM spent RM1.86 billion to manage the organization. Of the net profit of RM12.45 billion, RM7.45 billion (2024: RM7.91 billion) will be transferred to the Risk Reserve, which amounts to RM155.31 billion at the end of 2025 (2024: RM147.90 billion). “Given that 85 percent of BNM's assets are denominated in foreign currencies, it is important for BNM to build up adequate Risk Reserves. "This allows BNM to buffer financial market volatility as well as fluctuations in the exchange rate of foreign currency assets," explained BNM.

KUALA LUMPUR — Bank Negara Malaysia (BNM) will pay a dividend of RM5 billion to the government for 2025. Total assets as at Dec 31, 2025 stood at RM602.22 billion compared to RM621.54 billion in the previous year, largely reflecting the impact of currency translation following the strengthening of the ringgit. “BNM’s liabilities consist primarily […]

BNM Governor: Strong Economic Foundations Key to Navigating Global Uncertainty

KUALA LUMPUR: Strengthening economic fundamentals and policy buffers in the face of global trade uncertainties is an important step to ensure continued growth and, in turn, guarantee the well-being of the people, said Bank Negara Malaysia (BNM) Governor Datuk Seri Abdul Rasheed Ghaffour. He said that improvements in fiscal sustainability and attracting quality investment have created space to continue implementing much-needed reforms in social protection and the labor market. "These reforms may require some short-term adjustments, but these adjustments are necessary to ensure more inclusive growth and provide benefits to the people, including future generations," he said in the BNM 2025 Annual Report released here today. The central bank projects Malaysia's Gross Domestic Product (GDP) to grow between four percent and five percent in 2026 as Malaysia's domestic resilience and diversified export structure provide a strong foundation to face external challenges. Malaysia's path towards becoming a high-income developed nation must be built on the foundation of shared prosperity. “We need to build an economy that creates higher-paying jobs, supports households and businesses, and remains resilient for decades to come,” said the Governor. Abdul Rasheed said the financial sector remained effective in moving funds between savers and borrowers. “Financial institutions remain well-capitalized and operationally resilient, supported by more than adequate liquidity buffers and good asset quality. "This ensures continued access to financing for households and businesses, thus supporting consumption, investment and sources of income," he said. Looking ahead, he said in an increasingly fragmented world, ASEAN could be a source of strength. In the face of significant global trade tensions, ASEAN's united commitment to provide a prudent and constructive response reflects this principle. For Malaysia, being part of a region that upholds cooperation and stability is an important core in facing an increasingly complex global landscape. In this regard, BNM is leading efforts to advance more integrated regional financial and economic integration through the Financial Track. The regional payment network continues to expand, with 29 payment networks now operating across ASEAN member countries. “Now, tourists making purchases or small businesses selling products across borders can make and receive payments faster, more securely and at a lower cost. "This development reduces friction, expands opportunities and supports the income sources of the ASEAN community," he said. He said ASEAN's ability to respond collectively to external shocks has also been strengthened, including through the enhancement of the Chiang Mai Multilateralisation Initiative as well as several key strategies under the ASEAN Geoeconomic Task Force. All of these measures strengthen ASEAN's ability to act together against external shocks, thus creating an additional layer of resilience to face global uncertainties. "For BNM, the priority will continue to be on preparedness to face the challenges ahead, without neglecting the long-term priorities of enhancing economic prospects and preserving the country's resilience," he said. Abdul Ghaffour said the Monetary Policy Committee will continue to closely monitor developments and assess the balance of risks to the growth and inflation outlook. "BNM also continues to stand ready, as it has done throughout several episodes of significant uncertainty, to ensure that the market remains orderly and manage the risk of excessive volatility," he said. With the Financial Sector Plan 2022–2026 entering its final phase, implementation will be accelerated in line with efforts to develop the next direction for Malaysia's financial sector. "BNM will implement efforts to further facilitate innovation, including in new areas such as digital finance, stablecoins and climate adaptation in a safe and responsible manner," he said.

KUALA LUMPUR — Strengthening economic fundamentals and policy buffers remains crucial for Malaysia to sustain growth and safeguard public well-being amid global trade uncertainties, said Abdul Rasheed Ghaffour, Governor of Bank Negara Malaysia. Speaking in conjunction with the release of the BNM 2025 Annual Report, he highlighted that ongoing improvements in fiscal sustainability and the […]

Google to Require Financial Advertisers in Malaysia to Verify Licences From April 2026

KUALA LUMPUR — Google will require verification for advertisers promoting financial products and services in Malaysia beginning April 14, 2026, as part of efforts to strengthen protection against financial scams. In a statement, the company said the new Financial Services Verification (FSV) requirement will ensure that only legitimate and licensed financial service providers are allowed […]