Malaysia’s Sovereign Credit Ratings to be Unaffected by Major Spending Spree

Amidst concerns regarding Malaysia's affordability to inject more funds to boost its economy, ratings agencies expect Malaysia’s sovereign credit ratings to remain in-tact.

Chief Executive Officer of RAM Ratings Services (Ram Ratings), Chris Lee, stated that RAM Ratings’ forecast of Malaysia's fiscal deficit to GDP projection will be in line with the Government of Malaysia’s revised expectation of 4.0% for 2020. This is after considering the additional spending on economic stimulus introduced, the impact of the drop in oil and non-oil revenues, as well as the recalibration of expenditure from the original 2020 budget.

However, Lee cautioned that the Government woul...