Rating Agencies Agree Malaysia's Economic Fundamentals Remain Sound

KUALA LUMPUR, April 19 (Bernama) -- Rating agencies which are impressed with Malaysia's five per cent growth chalked up last year despite challenging economic conditions, agree that the country's fundamentals remain sound. Their assessment of Malaysia came out of a meeting last week between Second Finance Minister Ahmad Husni Hanadzlah and senior representatives of Fitch, Moody's and Standard & Poor's (S&P) before the International Monetary Fund-World Bank Annual Spring Meetings in Washington DC which the minister attended. "Malaysia's prospects are even brighter as it plans and prepares to take Malaysia beyond the 2020 Vision, that will see Malaysia competing successfully with other high-income countries," Ahmad Husni said in a statement. Last month, Moody's assessed that Malaysia's long-term economic prospects remained favourable given its structural strengths and diversified economy despite the revision of its 'A3' rating outlook to 'stable' from 'positive.' Meanwhile, Fitch Ratings affirmed Malaysia's Long-Term Foreign- and Local-Currency Issuer Default Ratings at 'A-' and 'A', respectively, with stable outlooks in February due to the government's commitment to fiscal consolidation path, stable ringgit, reserves and stronger economic growth, while S&P, late last year, maintained Malaysia's A- and stable outlook. Ahmad Husni said that Malaysia's development plans were unaffected by the recent budget recalibration and that the government would always invest in the future development of the people, in areas such as education, rural infrastructure and productivity. "The development practised in Malaysia is always inclusive and towards the mid-term goal of building the capacity of the people, both urban and rural," he said. --BERNAMA