KUALA LUMPUR: S&P Global Ratings (S&P) has reaffirmed Malaysia’s sovereign credit ratings at ‘A-‘ with a “Stable” outlook.
The Finance Ministry said the rating is a vote of confidence in Malaysia’s economy amid global trade uncertainty.
Malaysia’s rating, according to S&P, was supported by its well-diversified economic base, steady growth, and a balanced external position.
In a statement today, the ministry said S&P highlighted that the stability of Prime Minister Datuk Seri Anwar Ibrahim’s administration led to a more favourable policy environment. This has allowed economic reforms and fiscal consolidation to gain traction.
S&P noted that the stable outlook reflects its expectation that Malaysia’s growth momentum and existing policy environment will allow modest improvements in fiscal performance over the next two to three years.
The ministry added that S&P credited Malaysia’s rating to its consistent and strong economic growth, monetary policy flexibility, moderate current account surpluses, and a large export base.
Additionally, S&P said Malaysia’s economy is resilient in times of adversity, and acknowledged the government’s commitment to fiscal consolidation through subsidy reforms and revenue enhancement measures.
Anwar, who is also finance minister, was quoted in the statement saying that the government is committed to improving the quality of life for the people and pursuing economic reforms while ensuring responsible fiscal management.
“While external conditions remain uncertain, we will continue with our resolve to pursue reforms that will lift Malaysia to new heights,” he said.
The ministry, meanwhile, said the government will continue to remain vigilant in managing global economic conditions and push through reforms under the Ekonomi Madani framework.
It said the Public Finance and Fiscal Responsibility Act will ensure fiscal consolidation remains on track while providing ample support to sustain economic growth.
© New Straits Times Press (M) Bhd
