COMMENT | Malaysia’s economic life: Sick or terminally ill?

COMMENT | On Feb 1, Fitch Solutions reported a worsening economic outlook, a downgrade of GDP growth from 11.5 to 10 percent amidst strained government finances.

In early Dec 2020, Fitch Ratings downgraded Malaysia’s IDR from A- to BBB+, making it more expensive to borrow, citing lingering political wrangling and uncertain prospects for improving governance.

In between, Transparency International (TI) released its Corruption Perception Index (CPI), which saw Malaysia losing two score points and dropping six rungs in ranking in 2020 compared to 2019.

The United Nations Conference on Trade and Development (UNCTAD) reported that FDI in-flows to Southeast Asia fell by 31 percent on average, but Malaysia’s fell by 68 percent - more than double the regional average...