KUALA LUMPUR: Malaysia’s sovereign credit rating at “A3” with a “Stable” outlook has been reaffirmed by Moody’s ratings.
The Finance Ministry in a statement on Saturday (Jan 25) said the bond credit rating business said the rating reflected the consistent efforts undertaken by the Federal Government to sustain economic growth, as well as stayed the course in its fiscal reforms despite the uncertainties reshaping global economy and geopolitical fragmentation.
Prime Minister Datuk Seri Anwar Ibrahim said Moody’s affirmation recognised the Madani government’s relentless efforts to drive structural change, guided by clear policy directions and an unwavering commitment to high governance standards.
"The government remains steadfast in pursuing economic reforms and fostering regional growth, ensuring the fulfilment of its reform agenda for the benefit of all Malaysians.
“This year, the Madani government will drive fiscal and economic reforms further as outlined in Budget 2025, while prioritising quality investments for higher-income jobs, as well as accelerating integrated infrastructure developments to support economic diversification and new opportunities," he said.
Anwar, who is also the Finance Minister, said the government would capitalise on Malaysia’s chairmanship of Asean 2025 to lead the economic bloc into a unified economic order that thrives on cooperation and engenders a mutually beneficial outcome for the region.
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The statement further read that according to Moody’s, Malaysia will “be the fastest growing A-rated economy over the next two years, while declaring that Malaysia’s medium-term growth prospects remain buoyant.
"The rating agency added that structural credit strengths, including a well-diversified economic structure, competitiveness and broad price stability as among factors that consumption, complemented by deep domestic capital markets and a sophisticated financial system.
"They (Moody) recognise that broad political support has provided headroom to the government to implement substantial structural and institutional reforms, as well as the enactment of the Public Finance and Fiscal Responsibility Act 2023 and other legislation.
"The government remains committed to improve public finance by amplifying efforts on revenue enhancement and subsidy rationalisation," it said.
The statement said with the fourth quarter of 2024 GDP advanced estimates at 4.8%, Malaysia is on track to achieve its economic growth target of 4.8% to 5.3%.
"The government was optimistic that growth will remain robust in 2025, between 4.5% to 5.5.
"The fiscal consolidation efforts will further narrow the deficit, expected at 4.3% of GDP in 2024, to 3.8% in 2025, gradually aligning to the fiscal target under the Public Finance and Fiscal Responsibility Act 2023," it said.
