KUALA LUMPUR, July 1 ― The latest assessment on Malaysia’s credit rating by Fitch Ratings is a recognition of the government’s continuous efforts in embracing structural reforms to build a sustainable, inclusive and competitive economy, said Tan Sri Dr Mohd Irwan Serigar Abdullah.

“It also reflects the strong economic fundamentals and the sound financial position of the country,” said the Treasury Secretary-General in a statement here today.

The reaffirmation with a stable outlook reflected a fair and balanced view of the government’s commitment to sound macroeconomic policies and significant fiscal reforms, he added.

Fitch Ratings has reaffirmed the country's long-term foreign currency issuer default rating (IDR) at 'A-' and revising the outlook upwards to stable from negative.

Irwan Serigar added that with the reaffirmation, Fitch had also acknowledged the structural reforms that the government has undertaken, such as the subsidy rationalisation and revenue diversification, particularly the implementation of the Goods and Services Tax (GST).

“The Government remains resolute in strengthening public finances and will stay the course of fiscal consolidation path towards achieving a balanced budget by 2020”, he said.

He also pointed out the government’s transformation programmes had benefited the economy and the rakyat.

“These initiatives will be continued through the Eleventh Malaysia Plan to transform Malaysia into a high-income, inclusive and sustainable economy,” he said.

Despite Fitch’s concerns over 1Malaysia Development Bhd (1MDB), Irwan Serigar said the clarification on its rationalisation plan and options including monetisation of its assets, clearly indicated that 1MDB would not pose a systemic risk to the financial sector.

“Notwithstanding the challenges in the external environment, the Malaysian economy remains resilient with the private sector driving growth,” he said.

Investors' confidence remains strong as seen in the over-subscription of Malaysia’s US$1.5 billion (RM5.6 billion) sukuk issuance in April 2015. ― Bernama