KUALA LUMPUR – Datuk Seri Najib Tun Razak said it is important to ensure Malaysia’s sovereign credit ratings remain within the “A” band as it links directly to the cost of borrowings.
“If the ratings were downgraded, the lending cost would go up and individual, as well as businesses, would suffer due to the higher cost of borrowings,” the Prime Minister said.
“(Hence) it is essential to keeping down our deficit; to keeping the Government debt below the self-imposed level of 55 per cent of GDP (gross domestic product); and to ensuring that our sovereign credit ratings remain within the ‘A’ band,” he said at the launch of Invest Malaysia 2018 here today.
The Prime Minister was referring to the top investment credit rating band.
As at June 2017, the debt was recorded at 50.9 per cent of GDP.
Najib, who is also the Finance Minister, said if the ratings were downgraded, lending costs for all, including business and individuals seeking loans, would increase.
“All would suffer. GST (Goods and Services Tax) has protected us from that,” he added. – BERNAMA