Bank Negara Malaysia (BNM) is pleased to announce the transition from the Kuala Lumpur Interbank Offered Rate (KLIBOR) to the Malaysia Overnight Rate (MYOR) and Malaysia Islamic Overnight Rate (MYOR-i). By the end of the transition, KLIBOR will cease to exist effective 1 January 2029.

MYOR and MYOR-i, introduced in 2021 and 2022 respectively, are transaction-based benchmark rates based upon transactions in active and liquid markets. This transition follows the publication of a Discussion Paper on Proposed Full Transition to MYOR and MYOR-i and Cessation of KLIBOR in September 2024, which received broad support from market participants.

The transition is part of Malaysia’s broader financial benchmark reform agenda outlined in BNM’s Financial Sector Blueprint 2022-2026. It is also consistent with global financial benchmark reform initiatives. The transition to MYOR and MYOR-i serves as a proactive, forward-looking initiative to ensure the continuous robustness of domestic financial benchmarks.

BNM^[1] has published a roadmap to accelerate the adoption of MYOR and MYOR-i and ensure an orderly transition. Key milestones include:

• By 1 October 2026, market participants are expected to be operationally ready to offer products referencing MYOR and MYOR-i as part of their standard offering.
• By 1 July 2027, KLIBOR shall cease to be used in new trades across all products.
• By 1 July 2027, BNM plans to mandate the use of MYOR-i for all new Islamic financial products.
• By 30 June 2028, all legacy KLIBOR contracts will be converted to MYOR/MYOR-i where possible, and any remaining contracts shall incorporate robust fallback provisions.

BNM, in collaboration with the Financial Markets Committee (FMC), will continue to work closely with industry stakeholders to ensure industry-wide readiness for the transition. For this purpose, BNM has established the KLIBOR Transition Coordination Subcommittee and four working groups under the FMC to assist with the implementation effort and support an orderly transition.

For further details, contact the Financial Benchmark Review team at [email protected] or refer to:

• Financial Stability Review 1H 2025 - Box Article: Transition from KLIBOR to MYOR and MYOR-i
• MYOR and MYOR-i transition webpage

Bank Negara Malaysia
16 October 2025

References:

• MYOR Policy Document
• MYOR-i Policy Document

^[1] In consultation with Financial Markets Committee (FMC) as the Steering Committee for KLIBOR transition.