KUALA LUMPUR, Dec 24 — MARC Ratings has affirmed its unsolicited public information sovereign rating on Malaysia at AAA with a stable outlook based on the credit rating agency’s national rating scale.
It said the AAA rating reflects Malaysia’s credit strengths, including an open and increasingly diversified economy, sound monetary policy, a resilient financial sector, and continued progress in structural and institutional reforms.
“Malaysia’s economic growth has remained resilient in 2025 despite external uncertainties and is expected to be sustained in 2026, supported by strengthening foreign investments, particularly in manufacturing and high value-added services, alongside resilient household consumption and a stable labour market,” it said in a statement today.
The rating agency said Malaysia’s monetary policy remains a core credit strength, sustaining price stability and supporting economic growth.
“Malaysia’s external position remains strong, with consistent current account surpluses, adequate international reserve buffers, and a low share of foreign currency-denominated public debt.
“The ringgit strengthened around 8 per cent year to date as of end-November 2025, reflecting contained external pressures,” it noted.
MARC Ratings said Bank Negara Malaysia’s policy easing through a lower statutory reserve requirement and reduction in the Overnight Policy Rate has helped sustain credit flows and lower funding costs amid global uncertainty.
“The government’s commitment to fiscal consolidation under the Public Finance and Fiscal Responsibility Act 2023 is expected to support a gradual improvement in debt dynamics over the medium term, with the fiscal deficit projected to continue narrowing.
“Achieving the growth and fiscal objectives set out under the 13th Malaysia Plan (13MP), however, will depend on consistent policy execution and effective implementation,” it said.
The stable outlook reflects MARC Ratings’ expectation that Malaysia will sustain healthy economic growth, continue improving fiscal efficiency, and make further progress in addressing structural constraints, including broad-based subsidies, revenue leakages and elevated public debt.
“Looking ahead, key priorities for strengthening Malaysia’s credit profile include continued improvement in fiscal metrics while moderating debt accumulation through sustained fiscal consolidation efforts and ensuring the timely delivery of planned economic targets.
“Conversely, failure to meet fiscal consolidation goals or economic targets as planned could weaken the country’s credit profile,” MARC Ratings said.
