Najib pleased with Fitch Ratings' financial assessment on Malaysia

In his latest Facebook and Twitter posting Wednesday, Najib who is also the Finance Minister said he was delighted with the newly-announced ratings.

"I am pleased that Fitch, the international ratings agency, has maintained Malaysia's credit rating and revised our Outlook upwards to Stable.

"In view of the many uncertainties in the external sector, the newly-announced ratings are indeed a reflection of our government's financial management and economic policies," he said in the posting.

Fitch Ratings has affirmed Malaysia's Long-Term foreign currency Issuer Default Rating (IDR) at 'A-' and local currency IDR at 'A', whilst the issue ratings on Malaysia's senior unsecured local currency bonds are also affirmed at 'A'.

The ratings said Malaysian fiscal finances have improved since last year with the general government deficit falling from 4.6% of GDP in 2013 to 3.8% of GDP in 2014 and that general government debt/GDP declining from 54.7% at the end of 2013 to 53.9% at the end of 2014.

Besides that, Fitch also viewed the progress on the Goods and Services Tax (GST) and fuel subsidy reform as supportive of fiscal finances.

Further narrowing of the deficit is also predicted this year despite lower oil prices.

Nevertheless, according to Fitch, as against the 'A' median, Malaysia's fiscal position continues to remain weak.

But general government debt as a share of GDP at the end of 2014 was 53.9%, which is still above the 'A' median of 47.2%.

Meanwhile, Secretary General of Treasury Tan Sri Dr Mohd Irwan Serigar Abdullah said reaffirmation with a stable outlook reflects a fair and balanced view of the Government’s commitment to sound macroeconomic policies and significant fiscal reforms.

"Fitch Ratings has acknowledged the structural reforms that the Government has undertaken, such as the subsidy rationalisation and revenue diversification, particularly the implementation of the Goods and Services Tax (GST).

"The Government remains resolute in strengthening public finances and will stay the course of fiscal consolidation path towards achieving a balanced budget by 2020," he said in a statement.

Further commenting on the matter, Mohd Irwan said the federal government's transformation programmes have benefited the economy and the people, and that these initiatives will be continued through the 11th Malaysia Plan to transform Malaysia into a high-income, inclusive and sustainable economy.