Apart from the benefit of the fund raising itself, Malaysia will also be showing debt investors that the threat of a sovereign credit downgrade -- which emerged after last year's surprise election -- has receded.
The country's finances are also on a more stable footing as it will not need to re-calibrate its budget if crude prices remain within the $50-$70 per barrel range, said Finance Minister Lim Guan Eng.
The nation has collected more than expected from the Sales and Services Tax over the past 2 months.
Given the central bank is likely to be on hold for several months, the MYR swap curve can continue flattening and will help support the ringgit. - Bloomberg
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