In response to S&P’s GDP forecast of 6.1%, Tengku Zafrul said it was in line with the government’s expectation of higher growth in subsequent quarters, and in alignment with the higher end of Bank Negara’s official estimate of 5.3% to 6.3%
PETALING JAYA: S&P Global Ratings has revised Malaysia’s long-term sovereign credit ratings outlook to “stable” from “negative” as it believes the country is on a strong economic recovery path compared to others at similar income levels, says Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz, in reference to the global ratings agency’s latest report on Malaysia.
S&P also projected that Malaysia’s gross domestic product (GDP) will grow 6.1% this year and 5% in 2023 supported by strong exports, high commodity prices and domestic demand following the reopening of the economy.
In response to S&P’s GDP forecast of 6.1%, Tengku Zafrul said it was in line with the government’s expectation of higher growth in subsequent quarters, and in alignment with the higher end of Bank Negara’s official estimate of 5.3% to 6.3%.
Concurrently, S&P has also affirmed the A- long-term and A-2 short-term foreign currency sovereign credit ratings, as well as Malaysia’s A long-term and A-1 short-term local currency ratings.
“The stable outlook reflects our expectations that Malaysia’s steady growth momentum and strong external position will remain in place over the next two years.
“At the same time, we anticipate the policymaking environment will be supportive of restoring fiscal settings to a firmer footing,’’ the rating agency said in a statement.
S&P states that it may raise the ratings on Malaysia if fiscal outcomes outperform its forecasts. — Bernama
