The confirmation of Fitch Ratings is a reflection of confidence in the government's administration - PM Anwar
BERNAMA
February 16, 2023 
The confirmation of Fitch Ratings is a reflection of confidence in the government's administration - PM Anwar
Anwar said the endorsement also showed the international rating agency's confidence in the strength of Malaysia's economic recovery as well as the country's resilience in the midst of an uncertain and very challenging global landscape. - FB photo
KUALA LUMPUR: Fitch Ratings' confirmation of Malaysia's sovereign credit rating at BBB+ with a stable outlook for 2023 reflects confidence in the current government administration, said Prime Minister Datuk Seri Anwar Ibrahim.
Anwar in a statement today said the endorsement also showed the international rating agency's confidence in the strength of Malaysia's economic recovery as well as the country's resilience in the midst of an uncertain and very challenging global landscape.
"Malaysia's rating is balanced by a diverse economy with strong medium-term growth prospects despite high national debt and a low revenue base compared to operating expenses," he said, citing Fitch's statement issued on Wednesday.
According to Fitch, Malaysia's Gross Domestic Product (GDP) is expected to moderate to 4.0 percent in 2023 and 4.8 percent in 2024 compared to the encouraging GDP growth of 8.7 percent in 2022 due to the relaxation of the COVID-19 restrictions and the government's continued efforts in implementing recovery measures and support towards rapid and widespread economic growth.
The rating agency also expects the services sector to continue to be boosted by resilient domestic demand, subdued inflation and recovery in the tourism-related sector following China's reopening.
"The medium-term growth trend is expected to remain firm between four and five percent," he said, who believes that the manufacturing and export sectors are likely to face obstacles from weak global demand for electronics and commodities," he said.
Meanwhile, Fitch believes that the fiscal deficit will gradually decrease to an average of around 4.5 percent of GDP in 2023 - 2025, taking into account various factors including better expenditure rationalization and effective revenue mobilization measures.
Going forward, Anwar said, the government is determined to ensure that the country's fiscal position continues to be strong through the gradual consolidation of the fiscal deficit while balancing the need to support economic growth during these challenging times at the global level.
"Through Budget 2023, which will be presented on 24 February 2023, the government will continue to intensify reform efforts to drive the country's economic recovery, increase investment and improve public infrastructure.
"Continuous emphasis will also be given to initiatives to control inflationary pressure and ease the burden of the people from the high cost of living," he said.
In addition, he said, Budget 2023 will also focus on strengthening the country's finances and governance, to support the government's commitment to maintain the momentum of economic recovery towards improving the well-being of the people in line with the theme of Budget 2023 which is "Building a CIVILIZED Malaysia".
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