KUALA LUMPUR, June 28 (Xinhua) -- Fitch Ratings has affirmed Malaysia's long-term foreign-currency issuer default rating (IDR) at 'BBB+' with a stable outlook.

The rating agency said in a statement on Thursday that Malaysia's ratings balance a diversified economy with strong medium-term growth prospects against high public debt, a low revenue base relative to current expenditure, and political considerations that may hinder long-term policymaking and reform implementation.

Fitch expects Malaysia's gross domestic product (GDP) growth to rebound to 4.4 percent in 2024 and 4.5 percent in 2025, up from 3.6 percent in 2023, on resilient domestic demand and investments in the manufacturing sector.

According to Fitch, Malaysia's private consumption will benefit from favorable labor market conditions, cash assistance programs and retirement fund withdrawals.

Manufacturing output and exports are expected to grow with a recovery in external demand for electronics, though risks such as higher-for-longer global interest rates, geopolitical conflicts and trade tensions could pose challenges, it added. Enditem

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