By Neville Timothy Sanders & Fasiha Khusiri
KUCHING: Bank Negara Malaysia’s (BNM) announcement of an increase in the Overnight Policy Rate (OPR) to 2.25 percent this month has evoked mostly negative reaction from the public.
Those who have taken out bank loans are unhappy as they believe the rate increase will also lead to higher bank loan interests.
New Sarawak Tribune talked to members of the public for their comments.
QURRATU’AINI HASHIM, 29
Account Administrator
“In all honesty, I disagree wholeheartedly. Sure, there are pros and cons of the rate but for me, it’s not advisable in view of the current financial situation in our country. The increase in OPR will lead to an increase in loan interests. The government should reconsider and revise everything before taking action.”
ABANG FADZLI ABANG FAUZI, 33
Marketing and Trading
“Of course, it will affect specifically the SMEs, as people will spend less given the high inflation. The government should try to monitor goods prices in rural areas, and bring back subsidies for daily necessities, including electricity and water bills.”
NUR NIEZAWANIE SAFENE, 29
Administrative Assistant
“I believe it’s good in a way, however it will impact the B40 groups as the OPR increase will also affect bank interests. The higher the OPR, the higher the loan interests will be, especially for housing loans. The government should try to delay the OPR increase as loan borrowers will face problems and they could go bankrupt.”
AMEZA AFIFAH FAIZAL, 29
Customer Service Executive
“It’s actually good for our economic growth. Even though I will be affected by it, we must be prepared for it. Remember, when the government announced we can withdraw our KWSP savings, we need to know that this kind of issue will occur. Prepare a raincoat before the storm.”
SITI AMANANI MATSAH, 29
Education Assistant
“It’s quite burdensome, especially for the people that are less fortunate. Of course, the interest rate of loans will increase, and it will burden the people. What the government can do is to provide more assistance, change the payment period of personal financing instalments from 10 years back to 20 years.”
TIFFANY LEE, 28
Marketing Executive
“I’m worried when I heard about this. However, I’m not sure how this OPR can impact our economy. It better be good or else we have to work harder to survive. The government should be more lenient to those who want to take housing loans or any other loans. And, also make things affordable for us, one way or another.”
NEVIN SANSOM, 32
Administrator
“In a way, it will truly affect me as I have a housing loan. However, OPR is also part of the method in combating inflation. We might be seeing another adjustment by the end of this year before our economy fully recovers.”
IAN LEVI JACKERY, 30
Marine Biologist
“At first I didn’t bother about it, until I calculated my housing loan. Over two percent is something to think about. That said, I have to replan my expenses a little to compensate for the slight loss. The government must do something before things get worse.”
