Dear Valued Customers,
Pursuant to Bank Negara Malaysia's (BNM) official announcement dated 16 October 2025 on the Transition from Kuala Lumpur Interbank Offered Rate (KLIBOR) to Malaysia Overnight Rate (MYOR)/ Malaysia Islamic Overnight Rate (MYOR-i), please be informed that the KLIBOR will be progressively phased out from 1 July 2027. With effect from 1 January 2029, KLIBOR will be fully replaced by MYOR and MYOR-i.
Frequently Asked Questions (FAQs)
Why is KLIBOR being replaced?
The transition aims to strengthen the robustness and reliability of Malaysia's financial benchmark framework and this is in line with global financial benchmark reform. KLIBOR will be transitioning to the MYOR and MYOR-i, where these will be published by BNM based on actual overnight interbank market transactions and are considered more robust and sustainable reference rates.
Will this transition affect me?
The transition will affect you if you have loans, financing facilities, treasury products, derivatives, investment products or other financial contracts that currently use KLIBOR as a reference rate.
If your existing facility/product references KLIBOR and remains outstanding beyond the transition period, the Bank will work closely with you to transition the affected facility/product to MYOR or MYOR-i or such other applicable reference rates prior to the permanent cessation of KLIBOR on 1 January 2029.
What are the timelines for this transition?
BNM’s published roadmap sets out the following key milestones:
Source: Transition roadmap issued by BNM
What happens if my KLIBOR-linked contract cannot be amended before KLIBOR ceases?
For contracts that cannot be amended before KLIBOR ceases, the Bank is required to incorporate appropriate fallback provisions to ensure that the contracts can continue after KLIBOR is discontinued. The Bank will work closely with you regarding the incorporation of appropriate fallback provisions into your contracts, where required.
What is the difference between KLIBOR and MYOR/MYOR-i?
KLIBOR is term benchmark rate which is forward-looking and dependent on bank’s submitted rates. MYOR and MYOR-i are overnight reference rates derived from actual transactions making them more robust, reliable, and secure against market manipulation.
Where can I obtain more information?
Further information on the KLIBOR transition can be found on the BNM website: https://www.bnm.gov.my/-/klibor-to-myor
