Credit rating downgrade unlikely for Malaysia

Fenner: Malaysia’s success in securing the Japanese government’s guarantee for the Samurai bonds should improve some of the country’s debt servicing cost.

KUALA LUMPUR: Malaysia is unlikely to see any immediate credit rating downgrade despite its slowing economy growth and the projected increase in the country’s budget deficit, according to the Institute of Chartered Accountants in England and Wales (ICAEW).

The accounting institute’s economic adviser and Oxford Economics lead Asia economist Sian Fenner said the Pakatan Harapan government’s efforts to restore public finances and better manage the federal government debt have raised confidence in the national fiscal management over the medium term.