OPR Cut: A New Opportunity for Malaysian Investors
OPR Cut: A New Opportunity for Malaysian Investors

OPR Cut: A New Opportunity for Malaysian Investors

Fri, Jul 11, 2025 7:24 PM

On 9 July 2025, Bank Negara Malaysia lowered the Overnight Policy Rate (OPR) from 3.00% to 2.75%. This was the first time in years that the central bank reduced the rate, and it surprised many. The reason? To support Malaysia’s economy during these uncertain global times and help boost spending at home.

What Does This Mean for You?

With this rate cut, fixed deposit (FD) returns will likely go even lower. If you’re someone who keeps money in FDs, you might have already noticed the returns aren’t very exciting anymore. This is where the stock market becomes more attractive.

Why keep money in a savings product giving only 2% returns when you can invest in shares that may offer better returns and even regular dividends?

What Happened in the Market?

Vincent Lau, Head of Equity Sales at Rakuten Trade, commented that “Bank Negara’s lowering of the overnight policy rate (OPR) by 25 basis points is a good move, also pre-emptively encouraging for the economy and the FBM KLCI, as this no doubt had cushioned the impact of the tariff announcement to an extent.”

Right after the announcement, Bursa Malaysia reacted positively. The FBM KLCI went up slightly, and trading activity picked up. This shows that investors are confident that the OPR cut will benefit the economy and certain sectors.

Sectors That May Benefit

According to Vincent, rate cuts traditionally support equity markets by reducing borrowing costs, and sectors like technology and IPOs that are showing signs of recovery are also offering strong support.

If you're thinking of where to invest, here are some sectors that could gain from this lower OPR:

1. Banking
Banks may get more people taking loans because borrowing is now cheaper. Stocks like CIMB, Public Bank, and Maybank are seeing strong interest.

2. Property
With housing loans becoming more affordable, property developers may get more buyers. This could be good news for property stocks.

3. Consumer
People might start spending more thanks to lower loan rates and easier access to credit. This is good for companies selling everyday goods, groceries, or appliances.

4. Utilities and REITs

Stocks that pay regular dividends, like Tenaga Nasional or YTL Power, may attract investors looking for better income than FDs.

Stocks to Watch Now

Here are some active counters that caught investors’ attention:

  • CIMB Group – rose on hopes of more loans being issued
  • Public Bank – steady interest from investors
  • Telekom Malaysia (TM) – strong earnings outlook
  • Tenaga Nasional – attractive for its consistent dividends
  • IHH Healthcare – steady performance, good long-term value

Vincent also noted that while some banking stocks dipped early in the day due to earnings concerns, they rebounded later, suggesting strong investor confidence overall.

What Should Investors Do?

With interest rates falling and savings giving lower returns, now is a great time to:

  • Look into dividend-paying stocks
  • Consider property stocks if you're interested in longer-term growth
  • Keep an eye on banking and consumer-related companies

These sectors usually perform well when interest rates go down because people and businesses tend to spend and borrow more.

Why Trade with Rakuten Trade?

If you’re planning to invest, here’s why Rakuten Trade is a smart choice:

  • Lowest online brokerage rates in Malaysia
  • Option to trade via Contra
  • Access to research, stock ideas, and expert insights

Final Thoughts

Looking ahead, our head of equity sales believes that Malaysia remains an attractive destination for multinational investment, highlighting our skilled workforce and infrastructure as key strengths. He predicts that the FBM KLCI could end 2025 above 1,600 points, assuming global and trade-related risks remain manageable.

The OPR cut to 2.75% is a clear signal that now is the time to look beyond FDs. If you want your money to grow, the Malaysian stock market offers more potential than just letting it sit in a low-interest account.

With Rakuten Trade, you get the best value, expert tools, and the easiest way to start investing.

Don’t wait! start trading smarter today.