KUALA LUMPUR, Dec. 5 (Xinhua) -- Malaysia's worst flooding this year is unlikely to deliver a major blow to economic growth as key manufacturing hubs were largely untouched by Cyclone Senyar's heavy rains, Moody's said Friday.
"As much of Malaysia's manufacturing sector, which is largely concentrated in Selangor, Penang and Johor, was spared from disruption, we do not expect a material hit to economic growth, although agricultural output will likely weaken in the most affected states," the rating agency said in a report.
According to the report, expenses related to rehabilitation and reconstruction are likely to be absorbed by the current budget, keeping the fiscal consolidation trend intact.
It noted that while large parts of Peninsular Malaysia were subject to heavy rainfall from Cyclone Senyar, the most severe flooding occurred in the northern states of Kedah, Kelantan, Perak and Terengganu.
