Rating Upgrade Testament To Govt’s Relentless Effort In Reforms, Fahmi Says

Communication Minister Fahmi Fadzil said JP Morgan’s recent upgrade of Malaysia’s rating to “neutral” from “underweight” after almost six years is a testament to the government’s relentless effort in reforms that have renewed investor confidence.

He said the rating upgrade is not an easy feat, adding that this is a strong indication that Malaysia is on the right track. “It gives the market confidence in the government’s measures and efforts to improve governance, along with the policies and determination of Prime Minister Datuk Seri Anwar Ibrahim to fight corruption,” Fahmi, who is also the government’s spokesperson, he said.

On Wednesday, JP Morgan head of Asia-Pacific (ex-Japan/China) Rajiv Batra, in an interview with CNBC, said Malaysia’s rating has been upgraded from “underweight” to “neutral” after almost six years, crediting the country’s policy reforms, data-centred investments and infrastructure build-up.

Rajiv spoke about how Malaysia has taken bold measures in rationalising subsidies, including the recent one on diesel, and highlighted that those in need receive monthly cash assistance.

He said the government for passing difficult policies and reforms, citing the launch of the National Energy Transition Roadmap (NETR) and New Industrial Masterplan (NIMP) 2030. And, Malaysia’s rapid pace of progress was impressive with a 4.2 per cent gross domestic product growth in the first quarter of 2024, adding that Malaysia is back on investors’ radar.

“Look at ASEAN this year, which suffered USD7 billion outflows in ASEAN equities. Malaysia also started on a low note with close to USD150 million to USD160 million outflow in the first quarter, but in the second quarter, foreign investors are back with around USD200 million,” said Rajiv.

See Also: JP Morgan Upgrades Malaysia’s Rating To ‘Neutral’

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