Mah: Support retirees hardest hit by OPR cut

The Star

11-07-2025

PETALING JAYA: Targeted support measures for retirees should be introduced following the Overnight Policy Rate (OPR) reduction, says Datuk Dr Mah Hang Soon (pic).
The MCA deputy president said retirees, who rely on fixed deposits as their retirement safety net, would be affected by the routine economic adjustment.
Dr Mah said they are neither investors chasing profits in the stock market nor business owners seeking capital for the next big venture.
'These are our retirees, the very generation who built this nation with hard work, sacrifice and frugality.
'They lived through lean times, raised families and saved diligently for the future.
'They may not speak the language of fintech or global markets but they understood something fundamental: saving is security,' Dr Mah said in a statement yesterday.
He said the OPR reduction would cause their interest income to shrink, while their living expenses continue to increase.
This is especially so for healthcare and basic necessities, which would also be impacted by inflation and the expanded Sales and Service Tax.
'For them, it is a painful blow, one that threatens their already limited means of daily survival.' he said.
Dr Mah gave an example that a senior citizen with RM300,000 in fixed deposits would have received RM750 in monthly interest at the previous 3% OPR rate.
'With the rate now at 2.75%, their monthly income drops to RM687.50, a loss of RM62.50 every month, or RM750 a year.
'For someone living on a tight budget, this isn't just a financial adjustment – it's a lost bottle of supplements, or a critical box of blood pressure medication.
'While the OPR cut has its advantages such as boosting spending and businesses, lower loan repayments and cheaper financing for entrepreneurs, not everyone will reap its benefits.
'For our elderly, who are no longer working and who cannot simply increase their income, this is a cut they cannot afford,' he added.
Dr Mah said he does not oppose the proactive economic policies but strongly believe they must be accompanied by compassion and foresight.
He urged the government and financial institutions to introduce targeted support measures for retirees who are adversely affected, which could include a 'Senior Citizens' Special Interest Rate', a 'Capital Protection Scheme for Retirees', or an 'Interest Subsidy Support Grant'.
'The government and financial institutions need to ensure that our seniors are protected, respected and never forgotten,' he said.