On 24 September 2021, Bank Negara Malaysia (BNM) announced that the Malaysia overnight rate (Myor) is an alternative reference rate for Malaysia. The Myor:

  • will be administered and calculated by BNM as the volume-weighted average rate of unsecured overnight ringgit interbank transactions, including BNM's overnight monetary operations (excluding standing facilities); and
  • will run in parallel with the existing Kuala Lumpur interbank offered rate (Klibor) but the two-month and 12-month Klibor tenors will be discontinued with effect from 1 January 2023.

In respect of the launch of the Myor, BNM has issued:

  • a policy document on the Myor, which came into effect on 24 September 2021; and
  • a policy document on Klibor rate setting, which came into effect on 30 September 2021, superseding the earlier policy document issued on 27 December 2016.

BNM has also indicated that it is in the process of developing a new Islamic benchmark rate to replace the Kuala Lumpur Islamic reference rate by the first half of 2022. As such, BNM issued an exposure draft on the Malaysia overnight rate seeking public feedback.

For further information on this topic please contact Pamela Kung at Shearn Delamore & Co by telephone (+60 3 2027 2911) or email ([email protected]). The Shearn Delamore & Co website can be accessed at www.shearndelamore.com.