S&P Global Affirms Malaysia A- Credit Rating Stable Outlook

S&P Global Ratings has reaffirmed Malaysia's sovereign credit rating at 'A-' with a stable outlook, reflecting strong confidence in the country's macroeconomic management and growth prospects despite global trade uncertainties. The rating affirmation highlights Malaysia's well-diversified economy, ongoing political stability under Prime Minister Datuk Seri Anwar Ibrahim's administration, steady fiscal consolidation efforts, and a balanced external position supported by current account surpluses and a large export base. S&P noted Malaysia's resilient economic growth, including a 4.4% GDP expansion in the first half of 2025, driven by robust household spending, labor market strength, and investment in manufacturing and services. The agency expects modest improvements in fiscal performance over the next two to three years, supported by reforms such as subsidy rationalization and revenue enhancement measures under the Madani government’s policy framework. Prime Minister Anwar, who also serves as Finance Minister, emphasized the government's commitment to balancing growth with responsible fiscal management to improve quality of life and economic reforms. Overall, the reaffirmation underscores global confidence in Malaysia's stable policy environment and resilience amid external challenges.