KUCHING: Bond Pricing Agency Malaysia (BPAM) has introduced its MYOR (Malaysia Overnight Rate) Calculator, a new tool aimed at improving transparency and standardisation in Malaysia’s fixed income market as the industry transitions from the Kuala Lumpur Interbank Offered Rate (KLIBOR) to overnight rate-based benchmarks.

In a statement, BPAM said the calculator enables market participants to compute MYOR and MYOR-I based interest amounts over selected periods, incorporating market conventions such as business day adjustments, reference lags, lookback methodologies and spreads into a single process.

BPAM chief executive officer and executive director, Meor Amri Meor Ayob said the introduction of the calculator reflects the agency’s efforts to support the market’s migration towards overnight rate benchmarks.

“By providing a transparent and standardised approach to interest calculations, we aim to facilitate greater confidence, consistency and efficiency across the financial ecosystem,” he said.

The agency said the tool was developed to reduce operational complexity and improve alignment among market participants, including treasury, fund management and risk management functions.

BPAM head of financial engineering and research, Noor Bazlina Sharifmuddin said the calculator was designed to simplify the application of MYOR conventions in daily operations.

“We designed the MYOR Calculator to be both robust and intuitive, allowing users to apply MYOR conventions more efficiently in their workflows,” she said.

BPAM said the calculator is now available free of charge on its online platform, as part of wider efforts to strengthen market infrastructure and support the adoption of overnight rate benchmarks in Malaysia.