Escaping Middle Income Trap  a Challenge for Malaysia
Escaping Middle Income Trap  a Challenge for Malaysia

Escaping Middle Income Trap a Challenge for Malaysia

Escaping Middle Income Trap a Challenge for Malaysia

S&P Global Ratings expects that Malaysia’s objective to escape the middle income trap will continue to be a challenge while credit risk is high because of the country’s high private-sector credit level relative to income.
In its banking industry country risk assessment issued on Monday, it classified the banking sector of Malaysia in group “4” under its Banking Industry Country Risk Assessment, TheStar online reported.
Other countries in group “4” are Estonia, Kuwait, Mexico, New Zealand, Saudi Arabia, and Taiwan.
“The anchor for banks operating only in Malaysia is “bbb”. Our bank criteria use our BICRA economic risk and industry risk scores to determine a bank’s anchor, the starting point in assigning an issuer credit rating,” it said.
The international ratings agency said Malaysia’s modest income levels and vulnerability to global economic conditions constrain the country’s economic resilience.
“We believe that escaping the middle income trap would continue to be a challenge. Several factors temper these weaknesses: an open, diversified and competitive economy with a moderately flexible labor market; reasonably developed infrastructure; and a high savings rate,” it said.
S&P Global Ratings said credit risk is high because of Malaysia’s high private-sector credit level relative to income. This is partially mitigated by the financial buffers and healthy debt-servicing ratios of the country’s corporate sector.
Prime Minister Lee Hsien Loong said he expects Singapore’s economic growth this year to be at the upper end of the 2 to 3% range. The Singapore economy was Lee’s focus during his reception speech on Sunday as he met more than 250 Singaporeans based in the United States.
He is currently in the US for an official working visit at the invitation of US President Donald Trump. Lee’s optimism stems from strong third quarter results in areas such as manufacturing and services. The strong showing by the manufacturing sector helped Singapore’s economy grow 4.6% year-on-year in the third quarter from a year ago, advance estimates from the ministry of trade and industry  showed on Oct 13.
In August, the government narrowed the full-year growth forecast for the Singapore economy to 2 to 3%, from the earlier range of 1 to 3%.

Short URL : https://goo.gl/9qsU4d
  1. https://goo.gl/xCu9HG
  • https://goo.gl/nToqF3
  • https://goo.gl/DsrBRK
  • https://goo.gl/qyEk2T
  • https://goo.gl/K9j9pN

You can also read ...

Bithumb Hacked, $32m in Cryptocurrency Stolen
Cryptocurrencies dropped after the second South Korean...
South Africa GDP Shrinks
South African gross domestic product shrank 2.2% in the first...
Washington in March imposed tariffs of 25% on steel and 10% on aluminum, in a move mainly aimed at curbing imports from China.
Russia said on Tuesday it would impose import duties on US...
Saudi Arabia, which employs about two-thirds of its citizens, is chipping away at a budget deficit that ballooned to almost 16% of GDP after the oil shock of 2014, while FDI slumped more than 80% last year.
Show up, swipe in. The routine is familiar to office workers...
Taxes in Italy Drive Economy Underground
Italy grew rapidly over the 20th century, and its black market...
Australian Telecom Co. to Axe 8,000 Jobs
Australia’s dominant telecommunications company Telstra...
European businesses say it has become harder to do  business in China over the past year.
European companies complain they still face a tough business...
South Korea to Grow 3 Percent
The Organization for Economic Cooperation and Development has...

Add new comment

Read our comment policy before posting your viewpoints