KUALA LUMPUR: Moody’s Ratings has affirmed Malaysia’s long-term local and foreign-currency issuer ratings at A3 with a stable outlook, reflecting continued confidence in the country’s credit profile, says the Finance Ministry (MoF).
In a statement, the ministry said Moody’s also expects Malaysia to be the fastest-growing economy among its A-rated peers in 2026, underpinned by its diversified and competitive economy, strong medium-term growth prospects, ample natural resources, and deep domestic savings.
Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim said Moody’s assessment reflects the resilience of the Malaysian economy and the progress made in strengthening fiscal discipline, improving governance and broadening the revenue base.
“This assessment should strengthen our resolve, not invite complacency. Much remains to be done to ensure that sound economic management is felt in the incomes, opportunities, and daily lives of the rakyat,” said the Prime Minister.
“Amid heightened geopolitical tensions and continued volatility in global markets, Malaysia must preserve domestic stability, policy certainty, and reform momentum.
“The government will remain focused on protecting the economy and strengthening the foundations for sustainable growth.”
Moody’s attributed Malaysia’s stronger economy of 5.4% year-on-year in the first quarter of 2026 to buoyant domestic demand, particularly private consumption and investment, as well as a stronger contribution from electronics exports.
It also recognised that revenue reforms implemented since 2023 have broadened the tax revenue base sufficiently to sustain gradual fiscal consolidation, despite higher subsidy expenditure arising from elevated global energy prices and increased development spending under the 13th Malaysia Plan (2026 to 2030).
