The latest report from Fitch Ratings is a clear sign that our economy is doing well and is opposite to the opposition's constant accusation that the nation is going bankrupt, Gerakan vice- president Dominic Lau Hoe Chai says.

The Fitch report shows Malaysia’s economic prospect to have been raised from "negative" to "stable", Lau said in a statement today.

He pointed out that Malaysia’s sovereign credit rating has always remained at "A-", whereas the local currency credit rating has been maintained at "A".

"Our financial performance has improved as well, especially with the implementation of the goods and services tax and with the petrol subsidies rationalisation that come to the aid.

"In short, our country’s current economic fundamentals are sufficient to support the local finances."

Lau  ( photo ) analysed that although global crude oil prices remained diminished, the Malaysian fiscal deficit would still be reduced.

Despite the lower exchange rate against the US dollar, which reflects market sentiments, this would in no way affect the country's economic fundamentals.

Malaysia also does not utilise any emergency measures to stabilise the economy, which affirms the previous claims, Lau added.

Committed to reducing debts

He further explained that Malaysia's debts remained manageable and that the country would not go bankrupt like Greece, as Malaysia has been categorised as a medium-indebted country.

"In addition, external debts would remain lower than the GDP growth at 55 percent."

Lau also expressed confidence that as long as Malaysia practised stringent debt management, the country could ensure its economy remained prosperous, which would help in enduring any crisis.

According to the 11th Malaysia Plan, he noted, the government was committed to bringing down the public debt to 43.4 percent of the gross domestic product (GDP).

Until March this year, the country’s public debt was RM5.968 billion, which constituted approximately 51 percent of the GDP.

Under these conditions, which highlight the stability of the country, Lau said the opposition's claim that Malaysia would would be going bankrupt was untenable.

"Although the opposition does not provide any constructive ideas for stabilising the country's economy, it should not make defamatory comments that can adversely impact the people's confidence in the country's leaders."

From the findings of the international ratings agency to even our country's trends, he asserted, it was clear that there was no problem with the Malaysian economy, what more to even mention that it would go bankrupt like Greece.