The government needs to address the main concerns that led to Malaysia’s downward rating by Fitch, Anwar says

PETALING JAYA: Government must address key concerns leading to Malaysia’s credit rating downgraded by Fitch Ratings, says Datuk Seri Anwar Ibrahim (photo).

The opposition leader said Malaysia’s long-term default rating (IDR) cut from A- to BBB + was the first cut since the Asian financial crisis some 20 years ago.

“The cut serves to emphasize what we all already know: Malaysia needs a strong government committed to reform and is transparent, inclusive and determined in its actions,” the former Treasury Secretary said in a statement on Saturday (December 5). ).

Anwar had served as Deputy Prime Minister and Finance Minister during Tun Dr Mahathir Mohamad’s first tenure as Prime Minister under the Barisan Nasional government, when a financial crisis hit many East and Southeast Asian economies from 1997 to 1998.

On Friday (December 4), Fitch Ratings lowered the long-term rating for foreign currency (IDR) issuers from “A-” to “BBB +”, with a stable outlook.

Fitch said the depth and duration of the Covid-19 crisis has weakened several of Malaysia’s key credit statistics.

On this, Anwar said that the Covid-19 pandemic has shown how closely we are in this global village.

“This applies to public health and trade issues as well as the need to emphasize the safety of capital, clear and unambiguous clarity in governance and an inviting, investment-friendly environment that will help shape the pandemic exit plan in Malaysia”, he said.

The Port Dickson MP said it is misleading to seek comfort by comparing Malaysia to other countries that are worse off than Malaysia.

“We should only compare Malaysia today to the days when we were a regional – if not global – economic powerhouse,” Anwar said.

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