Small and Medium Enterprises Association (Samenta) chairman William Ng said the association was relieved with the rate hike pause amid ongoing global economic and geopolitical uncertainties.

“Currency volatility is causing SMEs trouble, and any OPR increase would threaten their performance when business and raw material costs are still unstable,” he told FMT Business.

Ng said that subsequently the government should introduce measures to promote the buying and utilisation of domestic products and services.

“If the government is offering any financial aid to B40 households, such aid should be channelled via e-wallets and restricted only for purchases in local stores,” he suggested.

This method will provide much-needed support to domestic trade and firms, Ng added.

“In the past, a substantial amount of such financial aid was spent on online marketplaces that are foreign-owned, and to the benefit of foreign merchants,” he said.

BNM’s decision to maintain the OPR at 3% was not surprising, and aligned with surveys conducted by Reuters and Bloomberg.

However, some observers had acknowledged the possibility of a rate hike as the ringgit continued its decline, reaching a 25-year low against the US dollar last week.

Malaysian Employers Federation (MEF) president Syed Hussain Syed Husman also lauded the latest OPR decision, particularly praising BNM for its awareness of the plight of MSMEs.

He pointed out that many MSMEs are still struggling to manage their finances and would not have coped well with an increase in borrowing costs.

“They (MSMEs) are mainly working to stay afloat with limited cash flow, which makes planning for the future financially challenging,” he said.

Although the situation remains challenging, these businesses have also been adapting and persevering in the current economic climate, he added.

The last time the OPR was raised was in May this year, from 2.75% to 3%. BNM has increased the lending rate five times within one and a half years.