Bank Negara Malaysia wishes to announce that the Statutory Reserve Requirement (SRR) Ratio will be lowered by 100 basis points, from 2% to 1%, effective 16 May 2025.

The decision to reduce the SRR is part of Bank Negara Malaysia’s continuous efforts to ensure sufficient liquidity in the domestic financial system. This will facilitate banks to better manage liquidity in an environment of greater financial market volatility and provide continued support for financial intermediation activity. The SRR reduction will release approximately RM19 billion worth of liquidity into the banking system.

The SRR is an instrument to manage liquidity and is not a signal on the stance of monetary policy. The Overnight Policy Rate (OPR) is the sole indicator used to signal the stance of monetary policy and is announced through the Monetary Policy Statement released after the Monetary Policy Committee meeting.

See also: Statutory Reserve Requirement