Bank Negara Malaysia (BNM) has reduced the Overnight Policy Rate (OPR) by 25 basis points to 2.75%, marking its first rate cut in over a year. The central bank said the move is a proactive measure to support the country’s economic growth amid external uncertainties and moderate inflation.

Following the decision, the ceiling and floor rates of the OPR corridor are adjusted to 3.00% and 2.50%, respectively.

BNM’s Monetary Policy Committee (MPC), in a statement released today, said that while Malaysia’s economy remains resilient, downside risks from global developments could pose challenges to the country’s growth momentum.

“The reduction in the OPR is a pre-emptive measure aimed at preserving Malaysia’s steady growth path amid moderate inflation prospects,” the statement said.

Domestic Outlook Remains Positive

The central bank remains optimistic about Malaysia’s economic outlook, pointing to continued expansion in the second quarter, fuelled by strong domestic demand and sustained export performance. Growth is expected to be driven by robust household spending, supported by favourable labour market conditions, rising wages, and targeted income-related policies.

Investment activity is also forecast to remain healthy, buoyed by progress in long-term infrastructure and private sector projects, as well as the execution of key national initiatives.

Global Headwinds Persist

Despite the positive domestic indicators, BNM flagged persistent global uncertainties—including geopolitical tensions and trade policy developments—that could trigger volatility in global markets and weigh on commodity prices.

While global growth is supported by consumer spending and easing monetary conditions, the central bank noted that external risks could dampen sentiment and slow global trade.

Inflation Remains Contained

Inflationary pressures in Malaysia are expected to stay moderate. Headline and core inflation averaged 1.4% and 1.9%, respectively, during the first five months of 2025. The central bank cited subdued global cost conditions and manageable domestic demand as contributing factors to the stable inflation outlook.

BNM added that the impact of upcoming domestic policy reforms on prices is expected to be contained, reducing the risk of a sharp uptick in inflation.

Ringgit Influenced by External Forces

The ringgit’s performance, BNM noted, will continue to be shaped by external factors. Nonetheless, the currency will remain supported by Malaysia’s sound economic fundamentals, structural reforms, and initiatives aimed at encouraging capital inflows.

The central bank concluded by reaffirming its commitment to monitoring developments closely and said the MPC will continue to assess the balance of risks surrounding the domestic growth and inflation outlook.

SkyWorld Development Bhd is set to expand its footprint in Penang with the acquisition of a 25.9-acre land parcel in Batu Kawan for RM48.51 million. The land, known as Parcel 1, is part of a 161.5-acre site in Bandar Cassia, Seberang Perai Selatan, earmarked for the development of Rumah Bakat Madani affordable homes under a joint initiative with the Penang Development Corporation (PDC) and its subsidiary, PDC Properties.

This acquisition follows approval secured at SkyWorld’s extraordinary general meeting in April 2025, with the land priced at RM43 per square foot. The company’s wholly owned unit, SkyWorld Cassia Development Sdn Bhd, signed the agreement with PDC as part of the broader Rumah Bakat Madani  affordable housing initiative.

First announced in December 2024, the Rumah Bakat Madani project aims to cater to middle-income earners with monthly household incomes below RM11,800. The units, priced between RM225,000 and RM420,000, will feature modern facilities such as a swimming pool, gym, multipurpose hall, and playground. Applications will be open to both locals and non-residents working in Penang.

The Rumah Bakat Madani development spans two key sites — the Batu Kawan tract and a 34-acre plot in Seberang Jaya — with Parcel 1 strategically located near Jalan Cassia Barat 1, close to the Design Village Outlet Mall.

SkyWorld said the acquisition will be financed through a combination of internal funds, bank borrowings, and remaining proceeds from its IPO. Completion is expected by the second quarter of 2026.

SkyWorld Pearlmont is the first project under the Rumah Bakat Madani Affordable Housing Scheme, a national initiative aimed at supporting the B40 and M40 income groups. The development is located on a 34-acre site in Seberang Jaya, along Jalan Todak, directly opposite the Penang Bird Park. It is a joint effort between PDC Properties and SkyWorld Development Berhad.

Set within a riverside environment, the project is designed with an emphasis on walkability, bicycle accessibility, and integration of green corridors and pathways. The site plan includes residential and commercial components and is in proximity to existing infrastructure such as schools, shopping malls, and medical facilities.

The development is proposed to be implemented in multiple phases:

• Phase 1 features four 38-storey residential blocks with 1,846 units, a two-level commercial block with 108 shop units, an eight-storey parking podium, and facilities on Levels 9 and 10.
• Phase 2 adds four 39-storey blocks with 2,136 units, each with communal spaces on the top floors.
• Phase 3 includes three 39-storey blocks with 1,756 units and 38 shop units at ground level, with shared facilities on the upper floors.

Based on earlier available information, each unit under the scheme is planned to have a built-up area of 900 square feet, featuring three bedrooms and two bathrooms, with indicative pricing between RM225,000 and RM420,000.

The project is still in its planning stage and more details will be available upon official launch.

Project Name : SkyWorld Pearlmont
Location : Seberang Jaya
Property Type : Affordable housing
Tenure: (to be confirmed)
Land Area: 34 acres
Built-up Size: 900 sq.ft.
Total Units : More than 5,700 units
Indicative Price : RM225,000 – RM420,000
Developer : Skyworld Mutiara Development Sdn. Bhd.

DISCLAIMER: This article is solely based on research done using publicly available data. This is not an advertisement. Any claim, statistic, quote or other representation about a project or service should be verified with the developer, provider, or party in question.

About Lucerne Residences

The final phase of residential development by Ideal Property Group at Ideal Vision Park in Bayan Lepas. It is just a short drive to Penang International Airport, 10 minutes walking distance to Straits International School. The project will see two blocks of 36-storey skyscrapers featuring a European living concept. It offers 480 residential units with a 5-storey parking podium.

Find out more about Lucerne Residences

The proposed reclamation and landfill rehabilitation project in Jelutong, near Karpal Singh Drive, is still pending approval from the Environmental Impact Assessment (EIA), Chief Minister Chow Kon Yeow confirmed yesterday.

Speaking at the groundbreaking ceremony of the Batu Kawan Public Market, Chow stated that the public feedback period for the project ended on June 30, and all responses have been submitted to the Department of Environment (DOE) for review.

“Any development must first secure EIA approval. If it’s not granted, we can submit an appeal with improvements. The submission deadline is February 26 next year,” he said.

The project, jointly undertaken by the Penang Development Corporation (PDC) and PLB Engineering Bhd, aims to rehabilitate the decades-old Jelutong landfill, which has been in use since the 1970s.

Chow noted that state officials, including Local Government and Town Planning Committee chairman Jason H’ng, have engaged with both PLB and PDC following a recent meeting with the Protect Karpal Singh Drive Action Committee.

The project includes a profit-sharing model, with portions of reclaimed land allocated to the state. However, any downscaling of the project based on public concerns may require the state to forgo part of its share.

“We will consider all feedback carefully and address any concerns if the project receives approval,” Chow added.