Bank Negara Malaysia (BNM) has announced the transition from the Kuala Lumpur Interbank Offered Rate (KLIBOR) to the Malaysia Overnight Rate (MYOR) and Malaysia Islamic Overnight Rate (MYOR-i), alongside a roadmap intended to accelerate adoption and support an orderly market-wide shift. KLIBOR will cease to exist effective 1 January 2029. MYOR and MYOR-i, introduced in 2021 and 2022 respectively, are transaction-based benchmark rates derived from active and liquid markets. The roadmap sets milestones for firms to be operationally ready to offer MYOR and MYOR-i products by 1 October 2026, for KLIBOR to stop being used in new trades across all products by 1 July 2027, and for MYOR-i to be required for all new Islamic products from 1 July 2027. By 30 June 2028, legacy KLIBOR contracts are expected to be converted to MYOR or MYOR-i where possible, with remaining contracts required to incorporate robust fallback provisions. The programme follows BNM’s September 2024 discussion paper on full transition and KLIBOR cessation, which received broad support from market participants. Implementation will be coordinated with the Financial Markets Committee, including through a KLIBOR Transition Coordination Subcommittee and four working groups established under the committee.
Bank Negara Malaysia 2025-10-16
Bank Negara Malaysia launches roadmap to replace KLIBOR with MYOR and MYOR-i and end KLIBOR by 2029
Bank Negara Malaysia (BNM) announced the transition from the Kuala Lumpur Interbank Offered Rate (KLIBOR) to the Malaysia Overnight Rate (MYOR) and Malaysia Islamic Overnight Rate (MYOR-i), with KLIBOR ceasing on 1 January 2029. A roadmap outlines milestones for firms to offer MYOR and MYOR-i products by 1 October 2026 and cease new KLIBOR trades by 1 July 2027. The transition will be coordinated with the Financial Markets Committee and includes a Transition Coordination Subcommittee.