Asian Insider

Malaysia's rating dip puts spotlight on political instability

Opposition, analysts call for confidence vote in Parliament to ease concerns over stability

Prime Minister Muhyiddin Yassin (right) with International Trade and Industry Minister Azmin Ali after a vote in Parliament last month on the budget. Tan Sri Muhyiddin's nine-month reign has been widely viewed as a period that has seen political impe
Prime Minister Muhyiddin Yassin (right) with International Trade and Industry Minister Azmin Ali after a vote in Parliament last month on the budget. Tan Sri Muhyiddin's nine-month reign has been widely viewed as a period that has seen political imperatives take precedence in decision-making. PHOTO: REUTERS
Open-air dining in front of Petronas Twin Towers in Kuala Lumpur last month. Malaysia's Finance Minister Tengku Zafrul Aziz said "the government is disappointed with Fitch's rating outcome, particularly during these exceptional times as the Covid-19
Open-air dining in front of Petronas Twin Towers in Kuala Lumpur last month. Malaysia's Finance Minister Tengku Zafrul Aziz said "the government is disappointed with Fitch's rating outcome, particularly during these exceptional times as the Covid-19 pandemic is still unfolding". PHOTO: REUTERS
Prime Minister Muhyiddin Yassin (right) with International Trade and Industry Minister Azmin Ali after a vote in Parliament last month on the budget. Tan Sri Muhyiddin's nine-month reign has been widely viewed as a period that has seen political impe
Shannon Teoh Malaysia Bureau Chief In Kuala Lumpur
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Malaysia's downgrade by one of the world's top credit rating agencies has cast a light on standards of governance and political instability in the country where a third premier in as many years is facing a potential ouster.

Fitch Ratings' move to bring Malaysia's sovereign rating down a step from A-to BBB+ was a reversal of sorts for what was once a beacon of political stability in emerging Asia until its first-ever change of government in 2018.

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A version of this article appeared in the print edition of The Straits Times on December 09, 2020, with the headline Malaysia's rating dip puts spotlight on political instability. Subscribe