MOF: S&P A-rating affirms Malaysia’s economic resilience, fiscal gains

Malaysia's A-sovereign credit rating from S&P Global Ratings remains A, with a stable outlook reflecting the country's economic resilience and fiscal improvements. S&P expects Malaysia's economy to grow 5.5% in 2026, with an average annual growth rate of 5% between 2026 and 2029. The rating agency highlighted reforms under the Ekonomi MADANI framework and stronger electrical and electronics shipments, higher energy exports, and resilient household consumption as key drivers of the current growth momentum.

Malaysia's fiscal deficit narrowed from 6.4% of GDP in 2021 to 3.7% in 2025, with the Public Finance and Fiscal Responsibility Act 2023 expected to further strengthen fiscal governance. S&P also noted Malaysia's large and diversified export base, current account surplus, and Bank Negara Malaysia's significant monetary policy independence as positive factors.

The domestic rating reflects the government's focus on fiscal sustainability, productivity, and competitiveness in the upcoming Thirteenth Malaysia Plan (13MP) and the upcoming Budget 2027, which will build on these reforms to improve incomes and living standards for the Malaysian people.