Bank Negara Malaysia (BNM) has announced that the Malaysia Islamic Overnight Rate (MYOR-i) will become the main Islamic benchmark rate starting 1 July 2027.
This move marks a major milestone in Malaysia’s journey to strengthen Shariah-compliant finance and ensure greater transparency and fairness in the Islamic banking system.
What Is MYOR-i?
The MYOR-i (Malaysia Islamic Overnight Rate) is a Shariah-compliant benchmark rate developed by Bank Negara Malaysia.
It’s based on real Islamic financial transactions, not interest-based instruments — making it fully compliant with Islamic finance principles.
In simple terms, MYOR-i will replace current reference rates used by Islamic banks to calculate financing costs, profit rates, and returns.
Why it matters:
- ✅ Transparent and transaction-based
- ✅ Free from riba (interest) elements
- ✅ Promotes consistency across Islamic banks
- ✅ Builds global trust in Malaysia’s Islamic finance system
Why Bank Negara Introduced MYOR-i
BNM’s decision aligns with its goal to make Malaysia a global leader in Islamic finance.
The central bank aims to build a system that is not only Shariah-compliant, but also modern, stable, and internationally recognized.
By 2027, all Islamic financial institutions — including banks and investment houses — will be required to use MYOR-i when setting their financing and deposit rates.
How MYOR-i Benefits Consumers and Businesses
For consumers, MYOR-i offers fairer and more transparent pricing for Islamic loans, credit, and deposits.
For businesses, it helps ensure stable and competitive financing rates, especially for SMEs seeking Islamic funding.
Key benefits include:
- Transparent pricing for Islamic products
- Fair profit rate calculation
- Improved customer confidence in Islamic finance
- Strengthened global reputation for Malaysia’s banking system
What This Means for Financial Consultants
As Malaysia transitions to MYOR-i, individuals and businesses will need guidance to understand how this change affects their loan rates, eligibility, and financing options.
Financial consultants like Leap Concept Sdn. Bhd. can play a crucial role in:
- Educating clients about MYOR-i and its impact
- Helping customers choose Shariah-compliant financing
- Offering free loan and eligibility checks
- Simplifying complex financial terms for everyday Malaysians
This change isn’t just technical — it’s an opportunity to help Malaysians make ethical, informed, and confident financial decisions.
The Future of Islamic Finance in Malaysia
The global Islamic finance market is expected to grow steadily, and Malaysia is at the forefront of that growth.
With the introduction of MYOR-i, the country strengthens its position as a trusted and innovative hub for Islamic banking.
By combining modern financial systems with strong Shariah values, Malaysia is building a fairer and more sustainable financial future.
💡 Talk to Us
Curious how MYOR-i might affect your financing or business loan?
Reach out to Leap Concept Sdn. Bhd. today for a free consultation and eligibility check.
Our team helps Malaysians make smart, Shariah-compliant financial decisions — with transparency and trust.
