MALAYSIA has retained its sovereign credit rating of ‘A-’ with a *Stable* outlook from S\&P Global Ratings, in a move that underscores international confidence in the country’s macroeconomic management despite ongoing global trade volatility.
In its latest review, the agency highlighted Malaysia’s broad-based and resilient economy, narrowing fiscal deficit, and sustained political stability under Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim’s administration.
S&P noted that these elements were conducive to ongoing policy reforms and economic consolidation.
“The stable outlook reflects our expectation that Malaysia’s growth momentum and current policy environment will support moderate improvements in fiscal performance over the next two to three years,” the agency said.
Malaysia’s external position and macroeconomic resilience were also cited as key strengths. S\&P noted that a healthy current account surplus—projected to remain stable at around 2.1% of GDP over the next three years—alongside a diversified export base and deep capital markets, supported the country’s financial stability.
The government’s reformist agenda, particularly under the MADANI economic framework, was also positively received.
“The MADANI Government is focused on improving quality of life for the people (raising the floor) and advancing economic reform (raising the ceiling), while ensuring responsible fiscal management,” said Anwar. “Despite persistent global uncertainty, we are determined to continue reforms that will elevate Malaysia to greater heights.”
Malaysia’s economy grew by 4.4% in the first half of 2025, supported by resilient household spending, a strong labour market, manageable inflation, and a surge in domestic tourism. The Ministry of Finance forecasts GDP growth of between 4.0% and 4.8% for the full year.
Strong investment activity across manufacturing, services, and infrastructure has bolstered both public and private sector momentum, which is expected to sustain economic expansion despite headwinds from global markets.
S\&P also recognised Malaysia’s consistent record of current account surpluses over the past two decades, noting this as a long-term structural strength. The agency expects the fiscal trajectory to remain on track under the Public Finance and Fiscal Responsibility Act 2023, with upcoming measures, including Budget 2026, forming part of the 13th Malaysia Plan (2026–2030).
The Ministry of Finance reaffirmed its commitment to responsive, flexible policymaking amid a rapidly evolving global environment, particularly in the face of changing trade dynamics. - September 20, 2025
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