At its latest Monetary Policy Committee (MPC) meeting, Bank Negara Malaysia (BNM) has decided to maintain the Overnight Policy Rate (OPR) at 2.75%, signalling continued confidence in Malaysia’s economic trajectory while keeping a close watch on rising global uncertainties.

The decision comes amid a resilient global economy in early 2026, largely supported by domestic demand and ongoing expansion in the technology sector. However, escalating energy and commodity prices, coupled with supply chain disruptions linked to the Middle East conflict, are beginning to dampen global growth momentum. Risks remain tilted to the downside, particularly if geopolitical tensions persist or financial conditions tighten further.

On the domestic front, Malaysia continues to show encouraging signs. Economic activity in the first quarter was supported by sustained household spending and strong export performance, particularly in the electrical and electronics (E&E) sector. Investment momentum also remains intact, driven by the rollout of large-scale infrastructure projects, steady private sector participation, and the implementation of national development master plans.

For the property market, the stable OPR environment provides a measure of certainty. Borrowing costs remain unchanged, which is expected to support homebuyer sentiment and ongoing project launches, especially in growth corridors across Penang and other key urban centres.

Inflation, while expected to trend slightly higher due to global cost pressures, remains manageable. Headline inflation averaged 1.6% in the first quarter, while core inflation stood at 2.1%, reflecting stable domestic demand and the cushioning effect of policy measures.

Looking ahead, BNM emphasised that the current monetary policy stance remains appropriate in balancing growth and price stability. Nevertheless, the central bank will remain vigilant, particularly as developments in the Middle East continue to shape the global and domestic economic outlook.