SME BANK’S ECONOMIC OUTLOOK 2026 REPORT: OVERNIGHT POLICY RATE TO HOLD AT 2.75% AS MALAYSIA’S ECONOMY EXPANDS AT 4.3%

KUALA LUMPUR, Jan 15 (Bernama) -- Small Medium Enterprise Development Bank Malaysia Berhad (“SME Bank”)  has released its latest report on Malaysia’s Economic Outlook 2026 (“the Report”), which forecasts that Bank Negara Malaysia (“BNM”) is expected to maintain the Overnight Policy Rate (“OPR”) at 2.75% throughout 2026, providing a stable monetary environment to support Malaysia’s economic expansion. The Report projects Malaysia’s Gross Domestic Product (“GDP”) to grow by 4.3%, despite heightened global uncertainties.

According to the Report, domestic growth momentum is expected to remain resilient, supported by sustained micro, small and medium enterprise (“MSME”) activities and continued policy support, which are expected to help cushion the economy against external headwinds from rising protectionism and ongoing geopolitical tensions. Overall, the growth outlook is broadly aligned with projections by the Ministry of Finance Malaysia, the International Monetary Fund and the World Bank.