The decision by Fitch to upgrade the outlook for Malaysia from "Negative" to "Stable" is a strong endorsement of the country's economic fundamentals and the Government's management of the economy, Dato' Sri Mustapa Mohamed said.

The Minister of International Trade and Industry continues, “This is also an affirmation of the Government's prudent, proactive and pragmatic policies under the Economic Transformation Programme to re-structure and diversify the economy.”

Dato' Sri Mustapa said Fitch's decision was particularly welcome in helping clear up lingering misperceptions among investors and could further enhance Malaysia's attractiveness as a preferred investment destination. "This is especially relevant at a time of uncertainty in the global economy and the ongoing turbulence in geopolitics," he said.

He pointed out that even before the revised rating, Malaysia was experiencing annual double-digit growth in realised investments. Private investments in 2013 grew by 13.1% and 11% from 2013 to 2014," he said.

Approved investments in the first quarter of 2015 stood at RM 57.4 billion. "We are striving very hard to maintain the momentum of the past two years, although the world political and economic environment will present additional challenges this year" Dato' Sri Mustapa said. “All the investments, those approved and implemented as well as those approved but awaiting implementation represent employment opportunities for talented and hard-working Malaysians," he said.

Dato' Sri Mustapa stressed that Fitch's rating comes on the heels of several other reports by independent international organisations that have seen Malaysia continue doing well as the preferred place to do business. These include rankings by IMD, World Bank and World Economic Forum.

"Investors are cognisant of these credible and influential reports. The latest Fitch rating is likely to give an added boost to our efforts in attracting the high-quality and high-value-added investments that are crucial towards achieving our aim of attaining the status of a high-income economy by 2020," he said.

Dato' Sri Mustapa also emphasised that Fitch's decision and the positive reports by other international entities should not lead to any complacency, given the rising competitiveness globally. "Quite the opposite, actually. They should spur us to fix any shortcomings and enhance our efforts to promote Malaysia as a preferred place for doing business," he said

Ministry of International Trade and Industry
2 July 2015