Malaysia cuts key interest rate for first time in five years
Inflationary pressure in the country is currently being influenced by global uncertainties, including US tariff policy developments and rising geopolitical tensions. These risks could heighten volatility in global financial markets and commodity prices.
Bank Negara Malaysia headquarters in Kuala Lumpur, Malaysia, July 31, 2019. (Photo: REUTERS)
Hanoi (VNA) – Bank Negara Malaysia (BNM) has cut its benchmark inter🦩est rate by 25 basis points to 2.75%, marking its first rate cut in five years.
The move was described as a step to support steady economic growth amid moderate inflation.
Specifically, the Malaysian central bank lowered the Overnight Policy Rate (OPR) from 3% to 2.75%.
Inflationary pressure in the country is currently being influenced by global uncertainties, including US tariff policy developments and rising geopolitical tensions. These risks could heighten volatility in global financial markets and commodity prices.
The ceiling and floor rates of the OPR were also adjusted lower to 3% and 2.50%, respectively.
The rate cut came just one day after US President Donald Trump announced new reciprocal tariffs on Malaysian goods, raising the rate from 24% to 25%. The new tariff is set to take effect on August 1 unless the two sides reach an agreement before the deadline./.
MITI said the decision to impose the duties, in the form of a bank guarantee and ranging from 3.86 to 57.90%, was made after preliminary investigations found sufficient evidence that these imports were brought into Malaysia at dumped prices.
The police has taken appropriate measures to ensure high preparedness ahead of this meeting, and the main focus is on the security of VIPs, traffic control and handling emergencies, he said, adding the team will use sophisticated technologies such as facial recognition systems and explosives detection to ensure the event runs smoothly.
Thanavath Phonvichai, President of UTCC, noted that there remains a window of opportunity for Thailand to negotiate a more favourable tariff rate, potentially lowering it to 20%, before the duties are set to take effect on August 1. However, he stressed that a final agreement with the US is far from certain.
Singapore’s enduring success is attributed to its strategic location, robust international outlook, and a well-established ecosystem of professional maritime services.
The minister also stated that the Association of Southeast Asian Nations (ASEAN) is also increasingly recognised as a peaceful region with a strong and growing economy.
Son announced an additional humanitarian aid package worth 350,000 USD for the Palestinian people, which will be channeled through relevant international organisations, aimed at easing hardships faced by the Palestinian people and supporting their reconstruction process.
ASEAN’s stance is to continue pursuing constructive engagement and negotiation with the US, he said, adding member states could hold bilateral negotiations at the same time.
In a letter dated July 7 and addressed to President Prabowo Subianto, US President Donald Trump confirmed the decision to keep the 32% tariff in place, despite ongoing talks.
In the new development phase, the Mekong-Korea Cooperation should focus on innovation as the key driving force, placing people at the centre of development while ensuring water-food-energy security and developing cultural industries, said Vietnamese Deputy Prime Minister and Minister of Foreign Affairs Bui Thanh Son.
There are "high odds" that a meeting between US President Donald Trump and Chinese President Xi Jinping could happen, though no specific date or time has been discussed, according to US Secretary of State Marco Rubio.
Deputy PM and FM Bui Thanh Son reaffirmed ASEAN's stances on the East Sea, Myanmar, the Middle East, and the Korean Peninsula. On the East Sea issue, Vietnam maintains its steadfast position of peacefully resolving disputes based on international law, particularly 1982 United Nations Convention on the Law of the Sea (UNCLOS).
In a post on X, Indian Minister of State for External Affairs Pabitra Margherita who co-chaired the meeting, noted that the ASEAN-India Plan of Action for 2026-2030 aims to expand cooperation further and give impetus to the comprehensive strategic partnership between India and the Association of Southeast Asian Nations (ASEAN).
The event was part of activities by the ASEAN Committee in Santiago (ACS), with participation from the embassies of Indonesia, Malaysia, the Philippines, Thailand, and Vietnam.
By the 2030, the Government aims for 80% of households to live within a 10-minute walk of an MRT station, strengthening Singapore’s commitment to sustainable urban mobility.
The US accounts for 18% of Thailand's exports. If the 36% rate is implemented, exports to the US could fall to 10% of the total, weakening bilateral trade relations over the long term.
AMM-58 is the largest gathering of ASEAN foreign ministers and senior diplomats from around the world to discuss pressing global and regional issues, promote cooperation, and advance the security and sustainability agenda in ASEAN.
Within the framework of the 58th ASEAN Foreign Ministers' Meeting (AMM-58) in Kuala Lumpur, Malaysia, Secretary-General of ASEAN Dr. Kao Kim Hourn held bilateral meetings with ASEAN leaders on July 9.
The Southeast Asian country has offered to cut import duties on most US goods to zero, expand access for US agricultural and industrial products, and increase purchases of energy and Boeing jets. It also pledged to reduce its 46 billion USD trade surplus with the US by 70% within five years.
Myanmar Ambassador Min Thein took over the ACV Chairmanship, pledging to continue ongoing initiatives and further strengthen the unity and engagement of ASEAN diplomatic missions in Vienna
With a foreign policy of independence, self-reliance, and multilateralisation, Vietnam has viewed Brazil as an ideal partner that shares a common vision of a just world based on international law.
Thailand’s consumer price index (CPI) declined for a third consecutive month in June, attributed to lower energy and food prices, though there are no signs of deflation, according to the country’s Commerce Ministry.
According to the Bank of Thailand report issued on June 30, total household debt tallied 16.35 trillion THB (503.4 billion USD) in the first quarter of 2025, equivalent to 87.4% of GDP, down from 16.42 trillion or 88.4% of GDP in the previous quarter.
