Moody's: Malaysia external finances strong

Moody's Investors Service said in its annual report that Malaysia's A3 rating and stable outlook are underpinned by its strong external financial position.

"The current account recorded large surpluses for the past five years, and we expect the trend to continue this year, though with a smaller surplus," Moody's Steven A. Hess said in the report.

"Furthermore, Malaysia's liquidity position is healthy, as short-term external debt has declined to a low level and international reserves are high."

However, the analyst added that Malaysia's government is taking precautionary steps to turn the private sector into the country's growth engine and compensate for the declining amount of private sector investments compared to public sector.

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