KUALA LUMPUR, June 28 — S&P Global Ratings’ revision of Malaysia’s long-term sovereign credit ratings outlook to “stable” from “negative” is a testament to its confidence in the efforts on fiscal consolidation and empowering the country’s economic growth, said Minister in the Prime Minister’s Department (Economy) Datuk Seri Mustapa Mohamed.
He said despite facing various challenges, Malaysia has been able to maintain an encouraging growth rate.
“This (the revision) is welcomed and a recognition of the validity of the policies that we have implemented in facing the various challenges amid geopolitical and economic uncertainties as well as inflationary pressures affecting many countries.
“We will undoubtedly continue to face a challenging situation, but based on our current capabilities, the government is confident that it can manage the country to the best extent possible in order to safeguard the welfare of the Malaysian people,” he said in his opening address at the World Digital Economy and Technology Summit (WDETS) here today.
Yesterday, Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz said that S&P’s revision reflected its belief that the country is on a strong economic recovery path in comparison with other countries with similar income levels.
S&P also projected that Malaysia’s Gross Domestic Product will grow 6.1 per cent this year and 5.0 per cent in 2023, supported by strong exports as well as high commodity prices and domestic demand following the reopening of the economy.
The rating agency also said it may raise the country’s ratings if fiscal outcomes outperform its forecasts.