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PETALING JAYA: Government Should Address Key Concerns That Led Fitch Ratings Downgrading Malaysia’s Sovereign Credit Rating, Says Datuk Seri Anwar Ibrahim (Photo).
The opposition leader said the downgrade of Malaysia’s long-term foreign currency issuance default rating (IDR) to BBB + from A- was the first downgrade since the Asian financial crisis some 20 years ago.
“The downgrade serves to highlight what we all already know: Malaysia requires a strong government that is committed to reform and that is transparent, inclusive, and firm in its actions,” the former finance minister said in a statement on Saturday (December 5).
Anwar had served as Deputy Prime Minister and Minister of Finance during Tun Dr Mahathir Mohamad’s first term as Prime Minister under the Barisan Nasional government when a financial crisis affected many East and Southeast Asian economies from 1997 to 1998.
On Friday (December 4), Fitch Ratings downgraded Malaysia’s long-term foreign currency issuer default rating (IDR) to ‘BBB +’ from ‘A-‘, with a stable outlook.
Fitch said the depth and duration of the Covid-19 crisis has weakened several of Malaysia’s key credit metrics.
On this, Anwar said that the Covid-19 pandemic has highlighted how interconnected we are in this global village.
“This applies to both trade and public health matters and the need to highlight capital security, clear and unambiguous clarity in governance, and an attractive and investment-friendly environment that will help shape the exit plan. from the Malaysian pandemic, “he said.
The Port Dickson MP said that it is misleading to take comfort in comparing Malaysia with other countries that are worse off than Malaysia.
“We should only compare Malaysia today to the days when we were a regional, if not a global economic powerhouse,” Anwar said.
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