MOODY’S GIVES PAKATAN’S FIRST BUDGET THE THUMBS-UP: GREATER TRANSPARENCY, TAX REVENUE, SPENDING CUTS & FOCUS ON INCLUSIVE GROWTH PUTS MALAYSIA ON THE RIGHT TRACK

NEW tax revenue and spending cuts announced in Budget 2019 may place the country back on the path of fiscal consolidation over the medium term, said rating agency Moody’s.

Its vice-president, senior analyst, Sovereign Risk Group, Anushka Shah said improved transparency and a focus on inclusive growth would be credit positive if sustained over time.

In a statement today, she also said that the first budget from Malaysia’s new government marked a departure from the previous trend of steady fiscal deficit reduction.

“However, in the near term, wider deficits and a heightened reliance on volatile oil-related revenue, including through Petronas dividends, will weaken the fiscal profile,” Anushka said.

– Bernama