Malaysia’s Economy To Grow More Than 4% Up To 2020
The Malaysian economy is set to grow at an average rate of more than 4% between 2017 and 2020, said S&P Global Ratings, on the back of prudent budgetary and economic policies.
The ratings agency believed the country’s stable outlook was based on its expectation that Malaysia’s strong external position and monetary flexibility would balance its relatively weaker, but improving, public finances over the next 24 months.
“We believe Malaysia’s credit fundamentals can withstand further stress in the oil and gas sector during that period,” it said.
The agency said it might raise the ratings if stronger economic growth, combined with the government’s fiscal efforts, led the government to reduce the level of public debt to GDP substantially, for example if the government started paying down outstanding public debt.
But it might lower the ratings if it assessed Malaysia’s public finances or institutional settings to have weakened.
Currently Malaysia has been rated “A-” and “A-2” for its long- and short-term foreign currency sovereign credit ratings.