PETALING JAYA: Moody’s Investors Service has again affirmed Malaysia’s “A3” rating and stable outlook, but warned that the country’s debt affordability or its ability to handle debt is weaker than other countries with similar ratings.
In 2019, the federal government’s interest payments account for about 13% of its revenue, significantly higher than the A-rated median of 4%. Moving into 2020, Moody’s forecast Malaysia’s interest payment against government revenue to breach 14% and to increase further to nearly 15% by 2021.