PETALING JAYA: To strengthen the country’s economic resilience, coordinated economic support measures should be implemented to complement the reduction of the Overnight Policy Rate (OPR), says the MCA Economic and SME Affairs Committee.
Its secretary, Lee Kah Hing, stated on Wednesday (July 10) that while the OPR cut is a proactive monetary policy decision, more needs to be done to revive economic momentum or restore public confidence.
"This is a timely and necessary move by Bank Negara.
"But without coordinated fiscal and structural policies from the government, the real impact on SMEs and ordinary households will be limited," he said.
He said the committee proposes four immediate steps for the government to implement to complement the OPR reduction.
The first is to introduce low-interest special financing schemes for SMEs, especially those in manufacturing, retail, and services.
"Second is to provide targeted living cost support or digital vouchers to boost consumer spending.
"Third is to temporarily reduce or suspend indirect taxes on basic goods, including essential food items.
"Fourth is to accelerate public sector infrastructure projects, to create multiplier effects across the economy," he said.
He added that while the rate cut may ease financial burdens, it may also exert downward pressure on the ringgit, increase import costs, and weaken savings returns, which need to be carefully managed.
"This is the first rate cut in two years, signalling that the central bank is concerned about near-term risks to growth.
"The government must seize this moment to realign economic priorities, focusing on long-term reforms in taxation, SME development, and domestic consumption," he said.
He said the committee remains committed to advocating for practical, business-friendly policies that safeguard Malaysia’s economic resilience.
Bank Negara Malaysia (BNM) yesterday announced a 25 basis point reduction in the Overnight Policy Rate (OPR), bringing it down from 3.00% to 2.75%, marking the first interest rate cut in two years.
Following the adjustment, the ceiling and floor rates of the OPR corridor have been revised to 3.00% and 2.50%, respectively.
