SHAH ALAM: The reaffirmation of Malaysia’s sovereign credit rating at ‘A-‘ with a “Stable” outlook by S&P Global Ratings (S&P) reflects confidence in Malaysia’s strong macroeconomic management, Sinar Harian reports.
Prime Minister Datuk Seri Anwar Ibrahim, who is also Finance Minister, said that despite significant uncertainties in global trade flows, Malaysia continues to offer better economic growth prospects compared to peer income countries, the Malay language daily reported.
“S&P noted that the rating is supported by a diversified economy, ongoing political stability, sustainable growth momentum, balanced external position, and narrowing fiscal deficit.
“The current political stability encourages policy formulation, enabling continued economic reforms and fiscal consolidation.
“The stable outlook reflects Malaysia’s growth performance momentum and the current policy environment that can moderately improve fiscal performance over the next two to three years,” Sinar Harian quoted Anwar as saying in a statement Saturday (Sept 20).
Anwar added that S&P also highlighted Malaysia’s strong economic growth, high monetary policy flexibility, and balanced external position supported by a moderate current account surplus and expanding export base as key factors in maintaining the rating.
Furthermore, he noted that S&P emphasised Malaysia’s diverse and resilient economy in facing current challenges, acknowledging the government’s commitment to fiscal consolidation through subsidy improvements and broadening the revenue base.
“The Madani government focuses on improving the quality of life for the people (raising the floor) and economic reforms (raising the ceiling), while ensuring responsible fiscal management,” he added.
