Malaysia's economic fundamentals are still strong, says finance minister

 

Malaysia's economic fundamentals are still strong and its growth prospect for the medium term is still bright, supported by a stable capital market, while the financial sector has ample liquidity and capital buffer, Finance Minister Tengku Zafrul Abdul Aziz said.

He said among the issues raised by the Members of Parliament during the Special Parliament Meeting were whether the investors' confidence was affected following the Covid-19 pandemic in the country.

“A brief answer, no. Foreign investor confidence (is) still intact in Malaysia's economic recovery prospects. Last month, international rating agencies such as Standard & Poor's and Moody’s Investors Service gave ratings of A- and A3 respectively to Malaysia,” Zafrul said in the 63rd Implementation and Coordination Unit Between National Agencies Report today.

Last week, Fitch Ratings also maintained Malaysia's rating at BBB+.

“Such ratings are not given simply, especially not for a country that is considered a 'failed' state. Historically, the level of foreign direct investment (FDI) and business environment in the country remains stable amid the current political landscape.

“For instance, the government transition was done peacefully and orderly in 2018, while despite the political polemics in 2020, Budget 2021 was approved by the Parliament,” Zafrul said.

- Bernama