Good ratings a shot in arm for govt if funds needed

Bank Islam Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid (pic) said the government has the flexibility to issue ringgit denominated bonds given the depth of the Malaysian capital market.

KUALA LUMPUR: Malaysia’s good ratings, complemented by the depth of the country’s capital market, is a shot in the arm for the government if the need arises for it to raise additional fund to further stimulate the domestic economy hampered by the COVID-19 pandemic.

“Domestic borrowings and bond issuances seem to be the option to raise funding for any additional stimulus packages or fund, if required, ” Bank Muamalat Malaysia Bhd economist Izuan Ahmad said.