KUALA LUMPUR (July 11): JP Morgan’s upgrade of Malaysia’s rating to “neutral” from “underweight” after almost six years is a testament to the government’s relentless efforts in reforms that have renewed investor confidence, said Communication Minister Fahmi Fadzil.

The rating upgrade is not an easy feat, he said, adding that this is a solid indication that Malaysia is on the right track.

“It gives the market confidence in the government’s measures and efforts to improve governance, along with the policies and determination of Prime Minister Datuk Seri Anwar Ibrahim to fight corruption,” Fahmi, who is also the government’s spokesperson, told Bernama here on Thursday.

On Wednesday (July 10), JP Morgan head of Asia-Pacific (ex-Japan/China) Rajiv Batra, in an interview with CNBC, said Malaysia’s rating has been upgraded from “underweight” to “neutral” after almost six years, crediting the country’s policy reforms, data-centred investments and infrastructure build-up.

In the interview, Rajiv spoke about how Malaysia has taken bold measures in rationalising subsidies, including the recent one on diesel, and highlighted that those in need receive monthly cash assistance.

He also commended the government for passing difficult policies and reforms, citing the launch of the National Energy Transition Roadmap (NETR) and New Industrial Masterplan (NIMP) 2030.

Rajiv said Malaysia’s rapid pace of progress was impressive, with a 4.2% gross domestic product growth in the first quarter of 2024, adding that Malaysia is back on investors’ radar. 

“Look at Asean this year, which suffered US$7 billion outflows in Asean equities.

“Malaysia also started on a low note with close to US$150 million to US$160 million in outflow in the first quarter, but in the second quarter, foreign investors are back with around US$200 million,” said Rajiv. 

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