KUALA LUMPUR – The downgrade by Fitch Ratings does not solely reflect Malaysia’s ability to service its debt, but also the impact of Covid-19 on the economy, said Minister in the Prime Minister’s Department (Economy) Datuk Seri Mustapa Mohamed.
“Malaysia never had a record of not servicing its debt, and our record is very good. Our economic situation was also strong and diverse, with an average growth rate of 6.1% during the period from 1971 to 2019.
“This figure is among the highest in the world, with developing countries reaching 3% in the same period. It shows that Malaysia’s international reserves and exports were at a good level,” he told the Bicara Naratif programme on TV1 tonight.
Nevertheless, he said, the government will take note of the downgrade and strive to improve the country’s financial position.
He said Malaysia has gone through various serious economic crises, including those in 1997/98 and 2008.
“When we faced a financial crisis, our economy recovered quickly, and based on past records, we are confident we will be able to repeat it.
“In any case, we need to pay attention to financial management, national governance and political stability. The government is committed to ensuring that the country recovers.”
On Friday, Fitch revised Malaysia’s long-term foreign currency issuer default rating to “BBB+” from “A-” with a stable outlook. – Bernama, December 8, 2020
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