In a statement, Malaysia’s Ministry of Finance (MOF) pointed out that Moody’s recent annual update stated that the country’s economic growth will continue to be stronger than it’s A-rated peers, while its strong diversified economy is partially offsetting the negative impact of the Government’s high debt level. In December, the ratings agency had maintained the Government’s credit ratings at A3 on the back of Malaysia’s commendable growth, deep domestic capital market and solid institutional framework. The Ministry also highlighted the November 2018 report by Fitch Ratings, which reaffirmed Malaysia’s sovereign ratings at ‘A-’ with stable outlook. “Most tellingly, Fitch concluded by saying that ‘the new government was elected on pledges to raise governance standards and address corruption, particularly with respect to public finances’,” said MOF. Similarly, S&P Global Ratings noted the Government’s commitment to gradual fiscal consolidation and expects the one-off pressures such as the funding of goods and services tax rebates should abate after 2019. S&P maintained Malaysia’s credit rating at ‘A-’.

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