Dear Valued Customers,

Kindly be informed that, as announced by Bank Negara Malaysia (BNM) on 16 October 2025, Malaysia will gradually replace the Kuala Lumpur Interbank Offered Rate (KLIBOR) with two new reference rates: the Malaysia Overnight Rate (MYOR) and the Malaysia Islamic Overnight Rate (MYOR‑i).

This transition forms part of broader efforts to strengthen the integrity and robustness of Malaysia’s domestic financial market benchmarks, in line with regulatory guidance and industry best practices.

As part of this transition, affected financial contracts will have to be updated to reflect the new benchmark rates in line with the applicable terms. The Bank is committed to supporting its clients and counterparties throughout this process to ensure a smooth and orderly transition.

Thank you for your continued support.

Frequently Asked Questions

1. What is KLIBOR?

• KLIBOR, introduced in June 1987, has long served as a key benchmark rate in the Malaysian financial market.
• It is a submission-based indicative rate, representing the rate at which participating banks are willing to lend or finance Ringgit funds to one another for specified time periods.

2. What will replace KLIBOR?

• KLIBOR will be replaced by two transaction-based benchmark rates administered by BNM:
  • MYOR (Malaysia Overnight Rate) is based on actual unsecured overnight ringgit lending transactions between banks in Malaysia.
  • MYOR-i is the Islamic version — the Shariah-compliant rate based on the Shariah-compliant unsecured overnight Ringgit lending transactions between banks.

3. How is MYOR/MYOR-i different from KLIBOR?

• MYOR and MYOR-i are transaction-based overnight benchmark rates, derived from actual interbank transactions in the overnight unsecured money market. In contrast, KLIBOR is a forward-looking term rate based on submissions. This makes MYOR/MYOR-i more robust and transparent.
  
  

4. What does the transition mean for Maybank* and our clients?

• The transition may affect clients who use Maybank’s financial services such as loans/financing, deposits, investment accounts or other products linked to KLIBOR rate.
• The transition means that KLIBOR-based products will need to transition to alternative benchmark rates, and the existing interest rates or profit rates, pricing conventions, and contractual terms referencing KLIBOR will have to be updated accordingly to reflect the replacement rates before KLIBOR is permanently discontinued by end of 2028.

5. What is Maybank doing to safeguard our clients’ interests during this transition?

• The Bank will engage affected clients and counterparties in due course regarding products impacted by the KLIBOR transition. In the interim, clients are encouraged to assess their exposures and contracts to better understand the potential risks and implications associated with the KLIBOR transition.

6. What are the key dates clients should be aware of?

• 1 July 2027: KLIBOR will no longer be used for new contracts across all financial products.
• Prior to 1 July 2028, all existing KLIBOR-linked contracts should be actively transitioned where possible. Any contracts that cannot be transitioned in time must incorporate robust fallback provisions.
• 1 January 2029 onwards — KLIBOR will be permanently discontinued.

7. References

• Bank Negara Malaysia (2025): Transition from KLIBOR to MYOR/MYOR-i. Available at https://www.bnm.gov.my/fsr1h25b1
• MYOR Rates: https://financialmarkets.bnm.gov.my/data-download-myor
• MYOR-i Rates: https://financialmarkets.bnm.gov.my/data-download-myori

* The Bank/Maybank refers to Malayan Banking Berhad and Maybank Islamic Berhad