Malaysia's Fiscal Consolidation Efforts Show Positive Results, Boosting Sovereign Credit Ratings

Malaysia's fiscal consolidation efforts have led to improved foreign reserves and increased foreign ownership of government securities, signaling a positive outlook for the country's sovereign credit ratings. The fiscal deficit has narrowed to 4.5% of GDP from 5.7% previously, with allocations for government assistance programs increasing to RM13bil from RM10bil last year. This could lead to a more favorable credit review, with Malaysia's current ratings standing at A3 (Moody's), A- (S&P Global Ratings), and BBB+ (Fitch Ratings).