KUALA LUMPUR, May 19 (Bernama) — SME Bank is urging SMEs to re-evaluate business strategies to remain competitive in the current economic climate, in light of the monetary policy normalisation by Bank Negara Malaysia (BNM) to 3.00%. BNM’s move was partly attributed to resilient domestic demand where the country’s gross domestic product (GDP) expanded above its historical trend, at 5.6% YoY in 1Q 2023.
SME Bank Group President/Chief Executive Officer, Datuk Wira (Dr.) Aria Putera Ismail commented, “As overnight policy rate (OPR) decisions are meant to keep inflation in check while the economy grows, a higher OPR should encourage savings, reduce excessive risk-taking and speculative investments. The normalisation of the OPR to 3.00% has lifted the monetary stimulus intended to address the COVID-19 crisis.”
