Tengku Zafrul Aziz says it is a positive step that Fitch Ratings has maintained Malaysia’s foreign-denominated long-term issuance rating at BBB+ with a stable outlook.
He says the retention of this rating is welcomed while the world faces an unexpected rating revision action.
“The retention of the rating for Malaysia attests to the resilience of the country’s economy in an uncertain environment,” he says.
Malaysia has consistently recorded a current account surplus over two decades with the largest current account surplus recorded in 2020.
It amounts to RM184.8 billion, equivalent to 4.2% of GDP.
Malaysia’s position is also supported by ample international reserves, large external bank and corporate assets.
“There is a net external foreign exchange position of RM1.1 trillion or 77.0% of GDP as at end-March 2021.
“These factors are supported by a flexible foreign exchange policy, which strengthens Malaysia’s ability to deal with external shocks.
“Furthermore, Malaysia’s retention in the FTSE Russell’s World Government Bond Index is a testament to the developed capital markets. It shows strong and resilient macroeconomic fundamentals.”
Download the Minister’s statement in Malay here:
Zafrul On Fitch Ratings
