KUALA LUMPUR, Sept. 29 (Xinhua) -- S&P Global Ratings has maintained Malaysia's sovereign rating at A-, with a stable outlook.
The rating agency said in a note on Monday that the stable rating outlook reflects its expectation that Malaysia's growth momentum and prevailing policy environment will allow steady fiscal performance over the next two to three years.
"Malaysia's consistently strong economic growth and high degree of monetary policy flexibility underpin the sovereign ratings," it said.
In addition, the country's external position is supported by moderate current account surpluses and a large export base.
"That said, growth in digital infrastructure has increased external financing needs," it added.
S&P forecasts Malaysia's gross domestic product (GDP) growth will reach 5.5 percent in 2026, following a solid outturn of 5.2 percent in 2025.
"Beyond the robust export performance, economic growth is underpinned by buoyant household consumption and sustained fiscal support," it said.
The rating agency also expects the Malaysian government to gradually reduce its fiscal deficit over the next few years, supported by the transition to targeted subsidy schemes and ongoing revenue measures. ■
