At its meeting today, the Monetary Policy Committee (MPC) of Bank
Negara Malaysia decided to reduce the Overnight Policy Rate (OPR) by 25
basis points to 2.50 percent. The ceiling and floor rates of the
corridor of the OPR are correspondingly reduced to 2.75 percent and 2.25
percent, respectively.
Global economic conditions have weakened in the recent period. The
ongoing COVID-19 outbreak has disrupted production and travel activity,
especially within the region. This has also led to greater risk
aversion, resulting in tighter financial conditions and a resurgence in
financial market volatility. Downside risks to the global growth outlook
have increased, particularly in the near term. However, a number of
countries have implemented policy responses. With further anticipated
policy measures, these actions are expected to mitigate the economic
impact of COVID-19.
The Malaysian economy grew at a moderate pace of 4.3% in 2019. Looking
ahead, growth, particularly in the first quarter, will be affected by
the COVID-19 outbreak primarily in the tourism-related and manufacturing
sectors. The weakness in the agriculture sector is also likely to
persist in the first quarter. For 2020, private and public sector
activities will be supportive of growth. Household spending is expected
to grow at a slower pace amid moderate employment and income growth.
Investment activity is projected to record a modest recovery,
underpinned by ongoing and new projects, both in the public and private
sectors. The 2020 economic stimulus package will also provide some
support to economic activity. Although domestic growth is expected to
gradually improve in the second half of the year, there are key downside
risks, mainly stemming from the evolving nature and prolonged impact of
the COVID-19 outbreak, and continued weakness in commodity-related
sectors.
In 2020, headline inflation is expected to average higher but remain
modest. The trajectory of headline inflation will be dependent on global
oil and commodity price developments and the timing of the lifting of
the domestic retail fuel price ceilings. Underlying inflation is
expected to be more moderate, amid limited demand pressures despite the
continued expansion in economic activity.
The reduction in the OPR is intended to provide a more accommodative
monetary environment to support the projected improvement in economic
growth amid price stability. The MPC will continue to monitor and assess
the balance of risks surrounding the outlook for domestic growth and
inflation.
SOURCE: BNM 3 MARCH 2020
Give your comment...
Yes i m agreed that that production and travel sector will be slow at this moment because of Covid-19 transmission. However, This downside economy will maintain the daily needs industries such as foods because people need it and medical industries due to this Covid-19 problem such as hand sanitizer, face mask and ventilator. Government have prepare a lot of initiatives for people to spend during Restricted Movement Order such as withdraw facilities of KWSP and postponement of PTPTN payment.
ReplyDeleteNurin Hannani bt Musoddak
1170724
KMA1
The recently reduced OPR rate meant that bank interest rate went down. The effect is that if you have a home or vehicle loan for example, you will pay a lower monthly installment that the previous month. For me, this also to encourage people to make loans.
ReplyDeleteNor Hamizah Syamimi bt Mohammad Sohaimi
1170740
KMA1
This comment has been removed by the author.
ReplyDeleteDue to the outbreak of Covid-19 that make the economy slow down, MPC reduce the OPR in order to secure improving growth amid price stability. With the economy now day, it take times to make sure the economy become stable again. Not only economy in Malaysia has been disrupted but it is all over the world. It is world wide tragedy.
ReplyDeleteNur Salsabila Binti Adam Malik
1170728
KMA 1
Yes im totally agreed that all sector such travelling, bisness, manufacturer and especially investment decreased dramatically due to Covid-19. Thats why Bank Negara had to lower the OPR. However, certain sector for the daily needs such as food and medical have a high demand cause of Covid-19 and they have made a huge profit and still maitain the economic growth. So to avoid future risks, goverment have prepare enough facilities and equipment for the sake of everyone. I suggest goverment should postpone payment and give enough salary to employee.
ReplyDeleteSiti Nur Atikah bt Mohd Tilal Fitri
1172263
KMA1
from the statement above,i am agree because of covid -19 criris, the employment, economic growth has affected. Regarding to crisis BNM had reduced the OPR by 2.5% to encourage accomodative monetary environment.Due to reduction it will lower the loan interest rate for consumer while low return for saving account and fixed deposit. Moreover government also issued a decree of curfew to prevent this crisis going on for a long time and become worth. So the government give incentives due to the covid-19 crisis such RM600 financial aid to holiday-makers in order to reduce the people's burden during the crisis and so on.
ReplyDeleteNurul Syazwani bt Abdul Rashid
1170736
KMA1
Covid-19 can be classified as the catastrophe risk because it is lead to the bank's outside exception.The financial institution related Covid-19 issue is reducing Overnight Policy Rate (OPR) from 2.75 to 2.5. Its stated that bank wants their depositors to spend the money.Its is the indicator that our economy is in worst position. Bank Negara Malaysia (BNM) has triggered the issue so they reduce the OPR. When the interest rate decrease, the depositors will spend their money because they will not get high return in future. So, in the meantime it will enhance the depositors to make a loan with bank because the interest rate in low. Due to Covid-19 issue, our economy's flow going slowly and BNM have to make the decision to improve the financial institutions.
ReplyDeleteSabrina binti Ahmad Fauzi
1170710
KMA 1
I do agree with the Monetary Policy Committee’s choice where they reduce the overnight policy rate (OPR). Malaysia’s economy is in a bad state as we are facing the inflation right now. So, by reducing OPR by 25 points to 3%, this could ease the inflation pressure. A lower OPR will bring benefit to domestic households and business sectors because the borrowing costs tend to be cheaper. So, people are encouraged to borrow from the bank because the interest rate is lower. Then, this will lead to an increase in purchasing power. When the purchasing power increase, the households can buy their needs due to some moneys that they acquired from bank’s loan.
ReplyDeleteNur Farhana Diyana Bt Ishak
1170730
KMA1
As we all know, any changes in the OPR will impact to consumer and our country.
ReplyDeleteFirstly, it will impact loans that use the Base Rate (BR) or the Base Financing Rate (BFR) to determine the interest rate by which it will lend to consumers. When the OPR reduces by 0.25%, then the BR will also reduce by 0.25% which means lower in loan's interest rate. For example, if using BR for mortgage loan, when the OPR reduce it will lead to a lower mortgage interest rate, which means that pay lower in monthly repayment.
Secondly, the returns for savings accounts and fixed deposits will be lower. Though an OPR reduction is good news for those taking out property loans. However, savers looking for more returns on their savings accounts and fixed deposits so it will be disappointed. The interest rates for these savings instruments will be reduced in tandem with the OPR cut. But this won’t affect any fixed deposits that you have placed prior to the bank’s revision of fixed deposit rates.
Lastly, the OPR cut is generally seen as a positive move for the economy. Businesses may fare better thanks to the rate cut, as there will be lower borrowing costs and increased domestic spending because consumers may welcome cheaper borrowing costs which means lower profit margins for banks.
Nurul Syazwani Binti Mhd Yusop
1170726
KMA 1
In Malaysia, the most affected is think is Tourism -related. The tourist industry is the second biggest foreign exchange earner in Malaysia and people who worked in this industry could lose their job because the company wants to cut costs and it also affected Malaysia's revenue where they depend on it. And as we know, Malaysia right now in Restricted Movement Order might be affected by the household, business sector and also to the government. It also affected small business and for those who live in a rural place or does not have fixed payment. For me, I think it is a good way for the government to help the people by allowing people to withdraw from KWSP or by reducing the OPR, etc. But, still, it only benefits people who have a proper payment, and I am not sure for the rural place or for those who do not have a fix or proper salary whether they get help from the government itself or not. So the decision for the the Monetary Policy Committee (MPC) of Bank Negara Malaysia reduce the OPR, might be helpfull for business people to make a loan or it also might help economy Malaysia.
ReplyDeleteSiti Nazurah Binti Ibrahim
1170712
KMA 1
Bismillah..
ReplyDeleteFrom the article, I agree with the reduction in overnight policy rates (OPR) made by economists because they want to control the country's financial or economic stability due to the very dangerous outbreaks that occur today. When a country experiences a tragedy that is hard to control such as covid-19, then the economy is also difficult to control as domestic and foreign investors begin to fear investing and traveling to that country. So, the government must find the way to stabilize the economy by lowering overnight policy rates. As we know, OPR is the interest charged on interbank loans. Banks also lend to each other. The depositor makes deposits in the bank and the bank will re-use the money for the purpose of lending. When the depositor loses money and the bank runs out of cash, the bank will lend out another bank and interest will be charged. going back to the main topic, it has been revealed that many consumers spend their money especially on making loans. when more customers borrow money from banks, banks will be able to profit more to finance or stabilize the economy. Economic confidence can help sustain consumption, bring in investment, government action and positive export-import balance.
Munirah binti Mamat
1172220
KMA 1
This comment has been removed by the author.
ReplyDeleteAssalamualaikum, thanks for the informations. For me, due to this current condition, this action should be done in order for our economies can operate well. The legal maximum and minimum price of goods and services be reduced due to Covid-19 and this will lead to shortage in economics. Automatically it encourages people to borrow from banks more as the interest rate decreases.
ReplyDeleteFadzilah Rabihah Binti Ramli
1170721
KMA1
The reduction of OPR itself consider as precautionary steps to ensure an improved path of growth in the sense of price stability as mention in statement above. This OPR also will affect the consumer which is the loan interest rates will be lower and the saving accounts and fixed deposits also lower the return. For sure, it bring disappointment to the savers who wants for more returns and I think it encourage some people to take loans.
ReplyDeleteI'm agreed that this COVID-19, had affected many sector like tourism and manufacturing. Moreover, right now Malaysia is uner Restriction Movement Order. Plus, its also affected the household, business and government because all the work, the business had to be stop and postponed.
However, the government had give us some initiative where people will be allow to withdraw RM 500/month from KWSP. I think its good decision for the time being, but still government have to come-out with another best decision for the sake of people, economy and our country, Malaysia.
Amira Hazira Hafizi
1170707
KMA 1
The effect for the reduction of OPR is consumer will have more cash to spend which will likely spur the domestic economy. Any changes in the OPR will also impact loans that use the Base Rate (BR) or the Base Financing Rate (BFR) to determine the interest rate by which it will lend to consumers.Other than that, while consumers may welcome cheaper borrowing costs, this means lower profit margins for banks.
ReplyDeletePuteri nabilah bt megat ismail
1172257
KMA 1
Bismillah.. first and foremost, I agree with the decision of BNM to reduce the OPR in result to the virus outbreak nowadays. This show that Malaysian's economy seems to be paralyzed in result to the Covid-19 outbreak. Unable to operate any business had affected all industries and automatically to the nation lifestyle now. I suggest to the government and also to the people out there to find a new way or new industry that is suitable to survive in the situation nowadays.
ReplyDeleteIffatul Auni binti Shamsudin
1170722
KMA 1
The worldwide financial circumstance has debilitated as of late. The continuous COVID-19 episode has upset creation and travel exercises, particularly in the district. Nonetheless, a few nations have executed approach reactions. With the normal approach steps, this activity is relied upon to diminish the monetary effect of COVID-19. While household development is relied upon to improve bit by bit in the second 50% of this current year, there are significant drawback dangers, fundamentally because of the advancing nature and long haul impacts of the COVID-19 flare-up, and the proceeding with shortcoming in the product related area. By 2020, title swelling is required to be higher yet at the same time moderate. The MPC will proceed to screen and survey the parity of dangers encompassing household development and swelling possibilities.
ReplyDeleteHariz Aiman Bin Muhamad Jamil
1172246
KMA 1
This comment has been removed by the author.
ReplyDeleteIn my pov, the reduction in OPR will firstly affect the consumers.lower OPR rates mean lower borrowing rates,thus consumers will be able to rise their disposable income due to the reduction in interest payments. Consumers will have more cash on hand to spend, which will likely spur the domestic economy. vice versa. As for the depositors, they will suffer losses as they gain lower return. On the banking side, they will suffer lower profit margin.After the announcement of the OPR cut, banking stocks were declined. Maybank lost five sen to RM8.55, Public Bank fell 46 sen to RM19.02 and CIMB Group dropped 10 sen to RM5.03.
ReplyDeleteIn conclusion, the reduction on OPR bring benefit to cosumers while banking institutions remain unstable profitability.
ANI MASTURAH BT MUHAMAD SHUAIMI
1170738
KMA1
In my opinion, it is a good strategy by reducing OPR during this Covid-19 period. This strategy can help maintaining the economic stability as the Malaysia's economy is having a downturn due to the Covid-19. This is because, by reducing the OPR it can increase the borrowing power among people. It will encourage more people to make a loan because the interest rate will be lower than usual. Then, with the loan, it will generate income for the economy to keep stable. But, due to the RMO people are restricted to do their usual activities and work. Thus it will affect the power of borrowing even how low the OPR is. Therefore, I suggest the government to seek other plan in other to increase more on household purchasing power in other to stabalize the economy and reduce the inflation.
ReplyDeleteNURUL SAIDAH BINTI MOHD SAID
1170723
KMA1
In my opinion regarding Covid-19 worldwide, there are so many impact from it, encompasses reducing in OPR that has an effect on employment, economic growth and inflation. While changes to the OPR have minimal impact upon home loan rates. Unfortunately, if you look up at Bursa Malaysia, many developers posted lower earnings and there are some companies which incurred losses from their operation.
ReplyDeleteSyarifah Nabihah bt Syed Nasir
1170735
KMA 1
In my opinion, I agree with the decision made by the bnm by lowering the opr. This is because it is a rate a borrower bank has to pay to a lending bank for the funds borrowed. A lower OPR creates the domino effect of lower interest rates and this is meant to encourage consumer spending and spur borrowing activities which in turn, will stimulate the domestic economy. However, an increase of the OPR will lead to an increase in loan interest rates. This will mean higher costs of borrowing, which can then also curb the accumulation of personal and household debts.
ReplyDeleteNurhafizin binti Ismail
1170704
KMA 1
Yes I agree, there are so many things that effected due to decreasing in OPR.roughly, we can conclude that our economic is in bad. When the decreasing of OPR,the interest rate will decrease.people will keep buying,they don't want to save their money (make a saving) because the return that they will get is less.in contrast, people will make a loan/financing because they know that they have to pay less,due to the decreasing in opr will lead to decreasing in interest rate.
ReplyDeleteWan awra nabilah bt wan jaya
1170731
KMA1
In my opinion,the effects of the OPR decline were the Interest Rate Reduction (Conventional) or Profit Rate (Islamic Banking)
ReplyDeleteWhen the OPR is lowered, the bank will lower the Loan Basis. This is because the cost of interbank loans has decreased, so banks will lower the cost of lending to borrowers. Automatically, the borrower's monthly payment will decrease.
However, it only involves loans or financing using the floating rate method.
Also, when all consumers' monthly payments are reduced, consumers will have extra cash to spend which will stimulate economic growth.
Nur Adila bt Yusup
1172225
KMA1
Covid 19 have give impact to the economic growth, and this crisis also impact to people. The decision to decrease the OPR can give people to borrow to the bank, because the interest decrease then people have spend money on the hand. And then it hope can grow up the economic and than increase the OPR back to stable the financial
ReplyDeleteMuhammad Hazmi Bin Hairudin
1172238
KMA1
For my opinion, what the government is doing is good because to deal with the convid-19 it takes a long time to resolve this problem.The problem is actually can say all country in this world have to face it. The issue should have an impact on the country's economy.As we knows that the tourism sector has a huge impact on the economy.With the current situation on the issue of the convid-19 is greatly affecting this sector.Besides,the oil prices also can be seen to fall in the international market and as we know that our country is one of the oil suppliers. Not only that, the government also has to increase the cost of dealing with the convid-19 .By doing reduction of OPR should bring a positive effect to economy.
ReplyDeleteFor my opinion, what the government is doing is good because to deal with the convid-19 it takes a long time to resolve this problem.The problem is actually can say all country in this world have to face it. The issue should have an impact on the country's economy.As we knows that the tourism sector has a huge impact on the economy.With the current situation on the issue of the convid-19 is greatly affecting this sector.Besides,the oil prices also can be seen to fall in the international market and as we know that our country is one of the oil suppliers. Not only that, the government also has to increase the cost of dealing with the convid-19 .By doing reduction of OPR should bring a positive effect to economy.
ReplyDeleteMuhammad Alif Haikal Bin Ahbu
1172477
KMA 1
From my personal perspective, the OPR has an effect on employment, economic growth and inflation. While changes to the OPR have minimal impact upon home loan rates, a cut of 25 basis points translates to a fractional reduction in loan installments, and is still a silver lining for industry players. BNM and government did a great job on helping the citizen to survive in this pandemic condition. But in this condition, the price of goods and services are increasing especially medical necessities such as face mask and hand sanitizer. With some people that did not had any savings of worker paid daily really gave them challenges in this situation.
ReplyDeleteThis comment has been removed by the author.
DeleteMUHAMMAD FIKRI HAZIQ BIN MOHAMAD NOOR
Delete1170739
Kma1
OPR has effect on employment, economic growth and inflation. While changes to the OPR, it also impact on borrowing and saving made by people. So, People will increase their spending rather than saving. I think it is good during covid19 because people can make loan for survive. As we know many companies had effected from covid 19 such as travel sector, business that involve with other countries and related business. So, the unemployment also high due to the effected. People lost their place to have income every month for a while but because decreasing of OPR, it will encourage them to borrow from bank.
ReplyDeleteNurul Aida abu bakar
1170715
KMA 1
Based on this current situation, I think this BNM decision was good in order to help the household that make loan with the bank to save their money in order to buy their necessities and for the future . But for the BNM it will effect by lower profit. I hope that our country will back to normal aamiin.
ReplyDeleteWAN AQILAH BINTI BASERI
1170705
KMA1
For my opinion, in term of reducing the rate of opr, we need to understand that the rate is fluctuate due to economic situation. In a few weeks ago, our country faced a crisis which is from virus covid 19. We also know that the rate was reduce not only in our country but among the world. We can see the price of the oil was reduce show that the economic in the world is not good. Also, the reduce of OPR give more advantage to consumer to more higher purchase and save the money in their pocket. We see that nowaday, PKP or perintah kawalan pergerakan emsure that all the company closed. This effect the household to get the income. Besides, the effect of opr also is the consumer will jot deposit to the bank and more make a loan from the bank
ReplyDeleteMuhammad fahmi bin hamdan 1172233
DeleteKma1
DeleteYes, it is true that due to the ongoing COVID19 outbreak now the global economic conditions have been declined now. It has affected the economy badly especially the travelling sector. I think that is why Monetary Policy Committee (MPC) of Bank Negara Malaysia had made a decision to decreased the Overnight Policy Rate (OPR) by 25 basis points to 2.50 percent. It is because to control the current stability of economy. By decreasing the OPR, it can control the inflation we are facing now.
ReplyDeleteSaiyyidah Nafisah Binti Shahar
1170729
KMA1
This comment has been removed by the author.
ReplyDeleteYes, i'm totally agree when MPC of BNM decided to reduce OPR because it can help people to survive well during this catastrophic event (COVID-19), especially those who have loan in the bank. This is because when OPR is reduced, then the interest rate will also decrease. So, they can pay back their loan with lower interest rate. Thus, they can spend the balance of their income for their household needs during this RMO. May Allah protect us and our family from this super tiny but dangerous virus.
ReplyDeleteRAHIMAH BINTI MD ZALI
1172224
KMA1
Firstly, it was sad news about pandemic disease, COVID-19 today. This was infected with a lot of sectors such as agriculture, tourism and other business that not only in Malaysia, but also worldwide. From what can I see, the one who runs the business in the Small to Medium Enterprise (SME) are the most infected with the announcement from Malaysia Government to lockdown and Restricted Movement Operation at 18 march 2020 until 31 march 2020.
ReplyDeleteBack to the topic, the decrease in the Overnight Policy Rate (OPR) was one of the initiatives from the government to stabilize the economics of Malaysia, when the government decreases the OPR, it is related to the decrease of the interest rate. Due to this event, if the contact of the loan is the based rate (BR) the payment of the loan will reduce the effect by the OPR, so the borrower will pay less than usual. On the other hand, people will also withdraw the money and this will lead to the growth in purchasing power among consumers. The decrease in the OPR also good news to the people who want to apply for the loan because the interest rate is decreased.
Hence, with today Malaysia’s situation, OPR cut by 0.25% is not a bad step but a great move by Bank Negara Malaysia and also the government to maintain and stabilize the economics of Malaysia.
Siti Sakinah Binti Pakhruddin
1172248
KMA 1
I strongly agree with what was discussed at the meeting where covid-19 has had impact on the country's economy especially in the tourism and production sectors. However, there are other sectors that are developing, which is daily food as well as health tools such as masks and hand sanitizers. I also agree with the BNM action that has decereased the rate which interest rates will decerease and many people will make a loan at this time.
ReplyDeleteSiti aminah bt sadali
KMA 1
In my opinion, for sure everyone know OPR is commonly related to loan, so the decision of MPC on decreasing OPR due COVID19 is for the benefit for other people. It is meant by people or organizations can apply loan with a low interest because nowadays, everyone use money a lot for needs especially also the cost that related in facing the issues of COVID19.
ReplyDeleteSITI THAQIFAH BINTI BACOK USMAN
1172253
KMA 1
Refer to the information given above, i agree with the Monetary Policy Comitte that reduced the OPR because of the global issues happen which is Covid-19. Based on the today’s current condition, we faced that our economy being slow so the BNM do an initiative to stabilize our economy ( reduced OPR). When the OPR reduced so it will affect the interest rate means that interest rate also decrease.So, when interest rate decrease, it encourages people to borrow money from the bank and also increase in spending the money. So in conclusion, it is good idea from BNM to reduced OPR in order maybe to help people and also to stabilize the economy growth.
ReplyDeleteNURSYAMIMI BINTI MOHD ZIN
1172237
KMA1
It is undeniable that the deteriorating global health situation caused by Covid 19 has caused the economic collapse of almost every country including Malaysia. Although the Malaysian economy is growing at a moderate pace in some sectors in today's critical situation, there is still risk of decline due to long-term virus. However, I support BNM's move to reduce the OPR as it will provide a support for better economic growth under stable condition. In addition, the decline has affected loans such as hire purchase, personal loans and PTPTN. This is because the bank will reduce interest rates immediately.
ReplyDeleteNURATIKAH BT ABU ZAN
1172227
KMA 1
In my opinion, the reduction of the overnight policy rate (OPR) to 2.50 percent have met the economist's expectations, which is seen as a necessary step to support economic growth amid the impact of the COVID-19 outbreak. as we know, the issue (COVID-19) not only happen in Malaysia, but also happen to the other country around the world. The reduction in OPR is in line with market expectations following the outbreak of COVID-19 and global uncertainty situation which is affecting the economies growth. Besides that, the reduction in the OPR signals to the market that Bank Negara Malaysia (BNM) is willing to cut rates further when needed by the economy in order to make sure the growth of the economy is smooth. The investment and consumption activities should be encouraged through the OPR reduction as well as the implementation of the recently introduced economic stimulus package. We can conclude here that,the decline in OPR by the BNM is a rational respond to supports economic growth in Malaysia.
ReplyDeleteAdibah Shafawati Binti Shaharuddin
1172260
KMA1
Covid19 give big impact on the economy and globally. When BNM reduce opr, it have will provide good accommodative monetary environment to improve economic growth and price stability. But with this kind of issue it will affect bank institution where they are having small profit margin. Nevertheless, consumers who are taking loan or mortgage having advantages where the interest rate is lower, so people tend to over borrow and put the economy in bad shape. Consumer who have saving account and fixed deposit will facing disadvantages where they get lower return if this kind of situation happenned. However it helps customer to save more.
ReplyDeleteIn my opinion this covid19 problem is a bit of an impediment to economic growth where various sectors such as the tourism, agriculture, and manufacturing sectors are likely to be affected if all sectors are slowed down. to ensure that the people do not continue to panic the government needs to ensure that the daily necessities of the people are sufficient and to ensure that the less fortunate are provided with little provision for their daily living.
ReplyDeleteNUR AIN NAJIHAH BINTI BADROL HISHAM
1172478
KMA1
For my opinion, Percentage reducing of contribution can shows a sign that the economy not in a good pace.Because i think, reduction means you have extra money at your hand to spend in the market. This is to encourage spending. To cheer up the money supply. Just as we see OPR is reduce by 25bp, isn't it enough. Then, the government can find a new way to solve this problem.
ReplyDeleteNURUL FADHILLAH BINTI KHAIRUDIN
1172755
KMA1
Covid19 give big impact on the economy and globally. When BNM reduce opr, it have will provide good accommodative monetary environment to improve economic growth and price stability. But with this kind of issue it will affect bank institution where they are having small profit margin. Nevertheless, consumers who are taking loan or mortgage having advantages where the interest rate is lower, so people tend to over borrow and put the economy in bad shape. Consumer who have saving account and fixed deposit will facing disadvantages where they get lower return if this kind of situation happenned. However it helps customer to save more.
ReplyDeleteNur aliah aqilah binti ahmad ram
1170734
Kma1
This comment has been removed by the author.
ReplyDeleteNowadays , we can see that COVID-19, had affected many sector tourism manufacturing, economy activites, industry and it also affected in our daily life. For me, I think it is a good way for the government to help the people by reducing the OPR or allowing people to withdraw from KWSP. Because any change in the OPR will impact in price stability and improving growth. In conclusion, i'm agreeing with additional initiatives that announced by the government to ensure economic activity can be running even if we are affected from Covid-19.
ReplyDeleteMuhammad saufi bin sulaiman
1170719
KMA 1
In my opinion, it is good that BNM reduce the OPR because that helped the borrower will paid less than before and the . By the way, BNM is responsibility to manage the monetary stability and financial stability conducive to the sustainable growth of the Malaysia economy but it will effect the profit of bank in this situation.
ReplyDeleteRahmiyatul husni binti tarmizi
1172753
Kma 2
To prevent the Covid-19 outbreak, there are many sector has agitated. Such as travel sector. I totally agreed the reduction of the Overnight Policy Rate (OPR). Because this is one of the solution to handle the economy during the Covid-19 outbreak. Because people will make a loan because of the reduction of the interest rate. It is make an extra money in hand. I hope the economy will be stable again.
ReplyDeleteUmi Mardhiah Binti Mohd Shukri
1172250
KMA1
In my opinion, the reduction of OPR by MCP help to encourage individual and household to spend more their money. Thus, due to the disaster of COVID-19 and RMO many people lost their job and their main income sources. They need to fulfill their needs and pay utilities and so on. They have to withdraw money and spend it. Eventually it will help to sustain the economic growth and help to increase the interest rates back.
ReplyDeleteNursyazwa naziha binti sha’ari
1172251
Kma 1
In my opinion, I truly aggree with you , that you mention about the OPR are correspondingly reduced to 2.75 percent and 2.25 percent, respectively because of covid-19. For me, because of this virus, all economics cycle will be damage and effect with others parties even in our country.As we can see all parties must stay home and don't go anyway cause of covid-19. It this simple example that we can see the business cycle with no move properly as before this.So cause of this , I think the government must take any initiative to solve problem that issue in our country.
ReplyDeleteAmirah Najihah binti Sasikin
1172243
KMA 1
Yes, due to Covid-19. Reducing the OPR is one of good idea from the government to help the community. This is because when OPR is lower, so the interest rate will be lower too. My advice is everyone should take the responsibility to ensure that their saving is enough.
ReplyDeleteAmiruddin Bin Hashim
1170698
KMA 2
This is a good action taken by the MPC of BNM. By reducing the OPR this will help the consumer to face this disastrous event that happen in our country nowadays. The reduction amount of the OPR also haf been taken in details. As they also must avoided from the happened of inflation where it might be happen in this limited resources in the circumstance right now.
ReplyDeleteMuhammad Zuhaer bin Naim
1172228
KMA 1
Regarding to the case of covid-19, i am agreed with the Monetary Policy Committee's where they wants to reduce the overnight policy rate (OPR). When the OPR is lowered, the bank will lower its loan basis. So, it can encourage many individuals to apply for real estate loan financing as interest rates have been lowered. By access to loan financing, more Malaysians will be using this opportunity to buy real estate. Other than that, as lending rates have been reduced, real estate borrowers are enjoying a monthly installment that allows them to have more money to spend. However, borrowers must plan their financial management well in spending.
ReplyDeleteIsmaniza bt Ismail
1172223
KMA1
I think the action made by MPC in reducing the OPR rate to help in controlling the economy of the country is a good decision as we know the economy situation is in bad condition due to Covid-19 that give many effects like lower growth, inflation rate and low return on profit. So the initiative given may help to support the people and to make the economic condition is still stable in facing the contagious outbreaks that occured until now.
ReplyDeleteNADIAH BINTI MOHD
1172218
KMA2
It is a good to action by MPC to reduce the OPR during the covid19 issue. It is because, when the OPR reduce, the interest rate will decrease. This situation will encourage people to borrow more money from bank and and in same time it will increase spending. Indirectly, it can help people and to stabilize the economy especially during facing this situation.
ReplyDeleteShahida binti mokhtar
1172219
KMA2
In my humble opinion,reducing the OPR rate is the most reasonable decision as for the time being. This is because, this decision will indirectly help to increase consumers' purchasing power, hence, will help strengthen and stabilize the country's economic growth in the future.
ReplyDeleteMarni binti Sulaiman
1170699
KMA1
For me the decison make by the Monetary Policy Committee (MPC) of Bank Negara Malaysia when thay decided to reduce the Overnight Policy Rate (OPR) is the best way to help people who affected by covid-19 nowdays. We can see that our economic right now is not stable because covid-19. This really give the benefit to the borrower in order to pay back their loan and decrease burden. Hope the goverment will come out with a lot of inisiative in order to help their people.
ReplyDeleteMohamad Hafizudin Bin Zoo
1170706
KMA1
In my opinion, the reduction of the OPR is an accurate decision by the Malaysian government, as it preserves greater macroeconomic stability. In addition, investment and consumption activities should be encouraged through OPR reduction. Furthermore, the reduction of OPR will automatically reduce interest rates at each bank, thus benefiting borrowers.
ReplyDeleteNURHANNA ATIQAH BINTI ZUBAIRI
1162736
KMA2
In my opinion, the decision that made by Monetary Policy Committee(MPC) to reduce the Overnight Policy Rate(OPR) is the best decision in our current situation. This is because of our unstable economy due to the Convid-19 issue. This issue had effected many economy sectors in our country and economic growth. Some of them may received a lost. Based on this situation, the government may need an amount of money for solving some problem immediately. So, the reduction of OPR may attract the customers for paying their debt to the bank. Besides that, the reduction of OPR also can help people finance in this situation because it will lower the payment cost. An addition, hopefully the government can well manage the economy problem to ensure our economy in a good condition in the future.
ReplyDeleteFARIS HAZIQ BIN AMIZI
1172222
KMA2
The decision made by Bank Negara regarding reduction of OPR recently will effect bank institution negatively and for the consumer would be both positive and negative. For the bank institution, the reduction affect the loan interest rate means the bank have to reduce the rate too which is they get less profit from the loan. And for the consumer, the policy will give stronger purchase power to them and they get because of the decreasing in return on saving and fixed deposit. Yet, the government need the consumer to purchase as many as they could even in this outbreak situation. in such a way, the consumer must not neglect their protection when they are shopping for food.
ReplyDeleteNUR ADILAH BINTI ZULLKAFLE
1170713
KMA 2
In my opinion, the reduction of Overnight Price Rate (OPR) by Bank Negara Malaysia impacts many involved parties especially banking institutions. Although it affects negatively for almost all financial institutions, it sparks as a lifeline for customers especially from B40s society class. In addition, the introduction of moratorium up to 6 months by Bank Negara Malaysia has summed up the crisis of such pandemic situation nowadays. Thus, all classes of society which include B40, M40 and T20 must be prepared with all necessary precautionary available such as emergency savings in order to cope with similar situation in the future. In a nutshell, all those introductions by government through Finance Minister, who is our current CEO of CIMB Bank and Bank Negara Malaysia can be described as ultimate problem solving to satisfy all needs and wants of national economics scenario today.
ReplyDeleteHaris Iskandar bin Rosdi
1172230
KMA 2
This comment has been removed by the author.
ReplyDeleteThis comment has been removed by the author.
ReplyDelete
ReplyDeleteI agree with that statement above. Due to the outbreak of Covid-19, there are many companies have faced economic slowdown. Almost all sectors give a bad impact on the economy especially the traveling sector but one of the sectors is performing well which is the Healthcare sector. It is because of the demanding consumer to use the product like gloves, sanitizer and also the bed of hospitals.
On the other hand, indices around the world recorded breach 52weeks low due to the outbreaking of Covid-15. Based on the history of market crashes, the COVId-19 outbreak is the worst market crash after world war 2. It took -20.7% in 16 days. Regarding that situation, all of the billionaires in the world have to lose the money in the stock market. Due to the volatility of the market, it took time to recover the market maybe 10 years to get the bull market.
In my opinion, it is a good strategy by BNM to reduced OPR in this situation. This strategy can help to maintain economic stability. By reducing the OPR, there are four positive impacts on the public and economy. First, the interest rate will decrease. As the based lending rate is reduced, real estate borrowers are enjoying a monthly installment reduction that allows them to have more money to spend. Second, encourage access to loans and financing. It is an opportunity for many individuals to apply home financing as the interest rate has been lowered. Third, economic stimulus. By reduces this OPR, the country's economy is expected to be more stimulated because the people are now earning money to spend. Lastly, property sales will increase as access to home financing becomes easier and interest rates have also been reduced. The steps of encouragement of BNM helps real estate developers to sell their property units more easily and quickly.
Muhammad Hanif Asyraf Bin Zolkifli
1172259
KMA 2
for me, Bank Negara did a right way by reducing the OPR rate. with our economic that are not in a good condition nowadays. This will help consumer to gain more purchasing power and the effect will strenghten back our economics in the future.
ReplyDeleteMuhammad Faizul Hakim Bin Mohamad Jamian
1170741
KMA2
ReplyDeleteIn my opinion, I'm agree with the decision that make by MPC of BNM due to Covid-19 today. As we can see, economic growth, travel and tourism industries are effect during this time. However, the foods and medical industries get the increase in demand like face mask and hand sanitizer because it is daily necessity. Some of them take the opportunities to increase the price due to the high demand now.
When the OPR is decrease, the interest rate also decrease. So, consumers are encouraging to borrow from the bank because the interest rate is lower. Then, this will lead to an increase in purchasing power. But, when the government start the RMO cause of Covid-19 outbreak, it resulted the slowly of the consumer to make a loan. Last but not least, government should find another way to reduce the inflation also stabilize the Malaysian's economy.
Norsuhaila binti Zainuddin
1170711
KMA2
I agree with the reduction in the Overnight Policy Rate (opr) that could help control the current increasingly unstable economy as a result of covid 19. With the lowering the Overnight Policy Rate (opr) would mean lower borrowing rates. In addition, people can also pay a low monthly installment rate if they make a loan for a vehicle or house.
ReplyDeleteAINA NABILA BINTI AMERAN
1172475
KMA2
I totally agree with the statement above which mentioned that the reduction in OPR intended to secure improving growth amid price stability. Besides, COVID-19 outbreak disrupted almost all activities especially tourism, agriculture and business. It seems to me that the severity of COVID-19 impact is already disrupting global supply chains and shipping. At worst its impacting exports and imports, thus hurting manufacturing production and affecting services.
ReplyDeleteAINUR AMIRAH BINTI ARIS
1170703
KMA2
I agree with the statement issued by BMN that the OPR rate was lowered because of the covid-19 pandemic that affected the Malaysian economy, but worldwide.Because of the pandemic, many sectors are suffering loss. So, with the lower OPR rate, consumers will be spending money from banks for spending instead of saving in banks. it helps the affected sector and restores the economy as usual.
ReplyDeleteNUR ZAYANAH BINTI MD MISLI
1170714
KMA2
It is indeed that during this COVID-19 outbreak, the OPR will be lower as it encourages people to do spending instead of saving. This current outbreak has given bad impact to certain sectors such as tourism and manufacturing companies. However, this also opens chance for small retailers to make loan from the banks as they will in future pay lower amount since the rate by the banks is also lower than before. When OPR is lower, it will affect our exports and imports. Meaning that, for exports, people would want to buy our products as it is cheaper and it will make our economy becomes stronger. Not to forget, people in oversea would not want to invest in Malaysia because when OPR is low, then the return that they will get will also be low. Thus, what I can see during the OPR is lower than before, it sometimes benefits to some people and will not benefit to certain people at all.
ReplyDeleteHAFIZAH BINTI SULAIMAN
1170700 (KMA2)
In my opinion,the decision made from Monetary Policy Committee of Bank Negara Malaysia was right. This is because,in the situation nowadays,people really need money to survive their own life. As we now the ongoing COVID-19 outbreak has disrupted production and travel activity, especially within the region. This has also led to greater risk aversion, resulting in tighter financial conditions and a resurgence in financial market volatility. So i think by this decision, it can help people to borrow money from banks as its rate is lower. And other sectors will also get their benefits.
ReplyDeleteNUR 'AQILAH BINTI MOHAMAT
1170708
KMA2
Yes,i'm agree with the MPC do.Decrease the OPR from 2.75 - 2.25,because with the situation of virus covid-19 all people will less do movement in daily day which is cut the expense to buy anything that they want,and buy cure with mask and hand sanitizer.from the buying with this cure,our country can got huge profit because the demand from people increase.
ReplyDeleteSITI NUR AISYAH RAMLEE
1172241
KMA2
This comment has been removed by the author.
ReplyDeleteI'm agree with the decision that MPC of Bank Negara when they decided to lower the OPR by 25 basis points to 2.50 percent. The reason of this reduction is due to uncertainty which can negatively impact our country. Bank Negara need to do this to protect the country. The reduction of OPR will help citizen cope with the high cost of living and also it is expected to give a boost in our economy. This is because, when the OPR is low, the citizen have more money and will increase their purchasing power. However, this reduction was not beneficial to the financial institution as it will increase more pressure to the banks. Some of the impact of the OPR is, it will reduce the Base Rate (BR) and Base Lending Rate (BLR). The buyers will see a reduction in their monthly payment if the bank decides to reduce the Base Rate by 0.25%. This will increase buyers spending capacity. Their saving also will be higher in the long run. Other than that, reducing OPR help strengthen our currency. After the announcement of reduction OPR, RM seems to be stronger against US Dollar, Singapore Dollar, Yen and British Pounds. However, the reduction of OPR will effect the citizen who have high savings and fixed deposits. It is because, their interest rate will reduce as well. So, their earnings will be drop compared to before. After all, the reduction obviously benefits the public. However, the reduction can be pointless if a person lacks of financial management skills. Heavy expenditures also can cause quite a damage even with a lower interest rates. Due to that, the citizen must planning carefully on how to spend their money.
ReplyDeleteNOOR IFFAH BINTI SUKRI
1170701
KMA 2
I agree with statement Monetary Policy committee decided to reduce OPR by 25 basis points 2.50 percent. As we know, our country ongoing covid 19 outbreak it is right that MPC do. At least, it can ease the burden of society to settle installment debt, to buy necessities and there are some companies that worker paid leave because factor covid 19.However, this will have an impact on bank institutions as well as customers. Hope that the reduce will help the people and the economy continue prosper in the future
ReplyDeleteNUR INTAN FARHANA BINTI BAHRUM
1172249
KMA2
MPC decided to reduce the OPR to 2.50 percent because of the pandemic virus Covid-19 that causes our country and other countries to cause suffer in economic, health and population. From the text above, reduction in the OPR is intended to provide a more accommodative or to stimulate economic activity by lowering interest rates. Because of this, the bank may incur loss from the decrease of OPR but it is also to support the projected improvement in economic growth amid price stability. Consumers will be able to see an increase in their disposable income due to the reduction in interest payments. Consumers will have more cash on hand to spend, which will likely stimulate the domestic economy.For example,economy may be stabilize by having consumer spend their money amid this Covid-19 to buy their necessities. While consumers may have cheaper borrowing costs, this means lower profit margins for banks. However,the OPR cut could be a positive action for the economy.
ReplyDeleteMAISARAH BINTI MOHD ARIFF
1170709
KMA2
I agree with the statement above, low OPR rates have a domino effect which is lower interest rates. The goal is to encourage consumers to shop and borrow. It will increase the economic growth. Hence, property sales will increase as access to real estate loan financing becomes easier and interest rates have also been reduced.
ReplyDeleteKhairunnisa Aqilah Bt Abu Hassan
1172756
KMA2
bank Negara Malaysia has been several times reduced the OPR along year 2019 and 2020. I strongly believe that this decision is made in order to spur the micro economy and domestic business. Even it is good for consumer to enjoy lower bank rates, consumer should't make new commitments if it is not necessary. However, for finance industry and investors not really favour this decision since it may effect their profitability.
ReplyDeleteNur Syazwani Khalid
3190030
MIF
IMO, I totally agree that our government decided to reduce the OPR, since we Malaysia also affected by the COVID-19 issue. This issue has come into the government sight, in order to fully commit and facilitate all parties involved, they have to take action regardless anything they have to control it. In March 2020, BNM announced that OPR reduced to 0.25%. We concerned that OPR changes in order to support the economic movement. This decision helps people eg, those B40 lessen their burden especially in this COVID-19 economic. Noted also, this situation urges banks and financial institution releasing the moratorium. Again, encourages people to use their money to make consumption and improve economic growth respectively.
ReplyDeleteKASHFUNNUR IMAN BINTI SHAHARUDDIN
1170737
KMA 2
IMO, I totally agree that our government decided to reduce the OPR, since we Malaysia also affected by the COVID-19 issue. This issue has come into the government sight, in order to fully commit and facilitate all parties involved, they have to take action regardless anything they have to control it. In March 2020, BNM announced that OPR reduced to 0.25%. We concerned that OPR changes in order to support the economic movement. This decision helps people eg, those B40 lessen their burden especially in this COVID-19 economic. Noted also, this situation urges banks and financial institution releasing the moratorium. Again, encourages people to use their money to make consumption and improve economic growth respectively.
ReplyDeleteKASHFUNNUR IMAN BINTI SHAHARUDDIN
1170737
KMA 2
In my opinion, the reduction of OPR is meant to encourage accommodative monetary environment which mean to encourage more spending from customers. We believed that reductions happen because of covid-19 which make the economic growth affected especially tourism and travel sector. On the other hands,for those who running businesses they don't need to feel anxious because there will be lower borrowing costs and increase domestic spending. So reductions of OPR has their pro and cons.
ReplyDeleteNurul Najiha binti Shahifudin
1170725
KMA2
Yes, I agree with the decision made by BNM which is to lower the OPR rate during this covid-19 period because this is a good strategy for now. The aim is to encourage consumers to spend and borrow, thereby stimulating the country's economy. So with the reduction in OPR, housing loan products become cheaper and can give benefit for new property buyers with lower initial interest rates.
ReplyDeleteNur Syifaq Insyirah Binti Sukor
1180788
KME1
A rise in OPR would mean that banks will increase the base lending rate (BLR) and base financing rate (BFR) because a rise would directly influence both. BLR is the rate that is determined by conventional banks based on the cost of lending to consumers. While BFR is a rate determined by Islamic banks based on the cost of lending to consumers.
ReplyDeleteTherefore the rise of OPR will result in higher interest rate or profit rate for loans that are tagged to BLR or BFR.
Muhammad Ariff Hakimi bin Azmi Helmi
1190896
KME3
Yes, I am totally agreed with Monetary Policy Committee (MPC) action in reducing the Overnight Policy Rate (OPR). We all know that Covid-19 outbreak have weakened most of the economic activities in countries. Since everyone is holding themselves back from spending, a lower interest rate would be the best choice to encourage people to invest more during these difficult times so that we can stimulate the local economy in Malaysia.
ReplyDeleteNur Hidayah Binti Muhd Saifullizan
1190889
KME4
I agree with the MPC’s action of lowering the OPR during this pandemic, Covid 19, as this can benefit many industries, individuals, and also to nation's economy. Firstly, when OPR is reduced, BFR or BLR will reduce also and this can benefit to loaner in paying a monthly payment. Secondly, this action can encourage people to take loans as the interest rate offered is low. Thirdly, this can benefit to increase Malaysian's economy when the purchasing power of individual increase related to the increment of making loan. Thank you admin for sharing this.
ReplyDeleteSuraya Adnin Binti Abd Mutalib
1190856
KME 4
I agree with the Monetary Policy Committee (MPC) decision by reducing the OPR. The reduce of OPR means that the interest rate of the bank will also reduce. This will help the economy recover from the impact of COVID-19 outbreak. The banks' customer will also experience cheaper borrowing cost and this will increase the customers' spending.
ReplyDeleteNur Alia' Binti Ahmad Nazri
1190828
KME 2