Kuala lumpur: S and P Global Ratings has reaffirmed Malaysia’s sovereign credit ratings at ‘A-‘ with a stable outlook, indicating confidence in the nation’s macroeconomic management despite global trade uncertainty, according to the Finance Ministry (MoF).
According to BERNAMA News Agency, the rating affirmation was supported by Malaysia’s diverse economy, political stability, steady growth momentum, balanced external position, and narrowing fiscal deficits. The MoF highlighted that S and P recognized the stability of Prime Minister Datuk Seri Anwar Ibrahim’s administration, which has fostered a more favorable policy-making environment. This stability has allowed economic reforms and fiscal consolidation to progress.
“The stable outlook reflects our expectation that Malaysia’s growth momentum and prevailing policy environment will allow modest improvements in fiscal performance over the next two to three years,” the credit ratings agency stated. MoF also noted that S and P credited Malaysia’s consistently strong economic growth, high monetary policy flexibility, and balanced external position, supported by moderate current account surpluses and a large export base.
Additionally, S and P acknowledged Malaysia’s well-diversified and resilient economy, recognizing the government’s commitment to fiscal consolidation through subsidy reforms and revenue enhancement measures. Prime Minister Anwar, who also serves as the Finance Minister, emphasized the government’s focus on improving the quality of life and economic reforms while ensuring responsible fiscal management.
According to the MoF, Malaysia’s economy expanded by 4.4 percent in the first half of the year, with growth being broad-based. Household spending remained resilient, bolstered by favorable labor market conditions, subdued inflation, vibrant domestic tourism, and government measures to sustain consumer purchasing power.
The ministry projected that Malaysia’s GDP would expand between 4.0 percent and 4.8 percent in 2025. It also noted that Malaysia’s stable external position continues to be a rating strength, with the country consistently recording current account surpluses for over two decades. S and P forecasted the current account surplus to stabilize at around 2.1 percent of the GDP over the next three years, driven by strong demand for Malaysian manufacturing exports.
The MoF stated that Malaysia has sufficient reserve coverage and that its deep capital markets are expected to support financial stability. The government remains vigilant in managing global economic dynamics, particularly in trade policies, while ensuring flexible and agile policy responses.
Looking forward, the government plans to pursue a comprehensive reform agenda under the MADANI Economy framework to achieve higher growth, enhanced economic resilience, and fiscal sustainability. The Public Finance and Fiscal Responsibility Act 2023 will ensure fiscal consolidation remains on track while supporting economic growth. Budget 2026, scheduled for announcement next month, will initiate the implementation of the 13th Malaysia Plan (13MP) 2026-2030.