Little are being said
about the Fitch Ratings which recorded a negative outlook for Malaysia in its
latest report. It is important to note that the ratings have a great impact on
the perception of foreign investors whereby keeping a good rating is important
in order to sustain the country’s competitiveness.
The negative report
on Malaysia is technically a ‘side-effect’
from the global market trend which is greatly affected by the uncertainties and
instability in the oil-producing countries.
Apart from that,
Fitch stated that Malaysia’s ‘lack of
reform’ to tackle rising debt is stated as one of the factors that caused a
negative outlook on the country’s sovereign credit rating. The country’s
widening fiscal deficit of RM14.9 billion plus high government debt of 53
percent of gross domestic product have also contributed to the fall in the
ratings.
