KUALA LUMPUR, June 19 (Xinhua) -- Moody's Ratings on Thursday affirmed Malaysia's A3 sovereign credit rating with a stable outlook because of its exports of artificial intelligence (AI)-related goods.
The rating agency said in a report that the technology presents opportunities to boost productivity and support economic growth across the region.
It noted that AI adoption is driving a surge in data centre investments in Asia-Pacific, with Malaysia emerging as one of the key beneficiaries alongside South Korea, Thailand and India.
It added that economies with the infrastructure, skilled workforce and institutional capacity to adopt AI are likely to benefit the most from the technology-driven transformation.
Moody's also said the ongoing reconfiguration of global supply chains amid geopolitical tensions and tariff uncertainty is creating opportunities for export-oriented economies in Southeast Asia.
The agency noted that Malaysia, alongside Vietnam and Thailand, continues to attract strong foreign investment as multinational companies diversify their manufacturing footprint and build more resilient supply chains.
It also said the Malaysian government's debt trajectory is expected to remain broadly stable, supported by energy-related revenue. However, it cautioned that higher subsidy spending and rising borrowing costs could partly offset these gains. ■
