Sunday 29 April 2012

Credit ratings cut on cards for Malaysia


Credit ratings cut on cards for Malaysia
Malaysia Sun
Saturday 28th April, 2012  
Malaysia faces a credit ratings cut over concerns about its high national debt.
Malaysia faces a credit ratings cut over concerns about its high national debt.

Standard Poor's and Moody's have said there is a possibility that the credit rating could be downgraded if the debt is not lowered.

While Malaysia's central bank has said the national debt is manageable given Malaysia's improved economic credentials, there have been suggestions the debt has been created by current government politicians who have spent large amounts of government money to gain support ahead of the nearing general election.

The Malaysian national debt currently stands at 54 per cent of its gross domestic product.

1 comment:

elmo said...

Hi friend, can you or anyone here in this blog tell me/us what will be the run off effects of a country like Malaysia having it's "Credit Ratings" cut by S & P.

How will this credit rating cut affects us.. the small time investors - directly or indirectly. say e.g. will the foreign investors fear the country's financial strength and starts to pull out their investments from KLSE and elsewhere, convert Ringgits into their currency and fled the country. Our foreign reserve shrunk? Ringgit devalue... etc etc.. what's your view?

elmo