Responses To Fitch Ratings …

PM Responses To Fitch Ratings …

The PM has hinted the government will take measures to rein its growing budget deficit in the wake of Fitch Ratings issuing a negative outlook on Malaysia’s sovereign credit risk.

Although Najib did not mention details on how the government plans to tackle the concerns raised in the ratings report, he said his administration is looking at various existing policy options as a short term solutions.

The government is committed to strengthening Malaysia’s macro and fiscal position and Malaysia have to put together a fiscal committee to address some of the challenges which will be revealed shortly in the forthcoming budget 2014.


BNM Responses To Fitch Ratings …

There is demand from non residents for the local issuances of Islamic bonds or sukuk as the financial instrument yields favourable returns.

There is nothing for us to overreact to regarding some sell off. We have seen this from time to time. Malaysia represents a highly open market and we experience inflows of funds and sometimes we see reverals.

Malaysia’s bond and sukuk market is developed enough to face any volatility.

Islamic bonds or sukuk that have a longer maturity period will attract strong demand from local and foreign institutional investors such as pension funds and insurers.