KL's fiscal accounts 'less susceptible to low oil prices'

Kuala Lumpur

MOODY'S Investor Service, which has affirmed Malaysia's sovereign at A3 with a positive outlook, views the country's fiscal accounts as less susceptible to lower oil prices, as oil-related receipts as a percentage of government revenue have been decreasing while increased manufacturing exports are expected to keep the current account in surplus for the next two to three years.

Hydrocarbon-related receipts now make up about 30 per cent of government revenue from 40 per cent six years ago while lower oil prices had also accelerated fiscal reforms. Drivers of the rating include the country's fundamental credit strengths - macroeconomic stability, domestic capital market depth and a favourable government debt structure.