Malaysia’s high external debt level makes it vulnerable to confidence shocks, Moody’s Investor Service Inc said.

Moody’s said this external debt has grown from 30 percent to 100 percent from 2012 to 2015, financial daily The Edge reported.

This is according to Moody’s latest report ‘2017 Outlook-Negative Outlook As Low Growth, High Debt Limit Policy Options' made available to its subscribers today.

The agency said Malaysia has limited ability to employ aggressive monetary easing policies, as it could trigger capital outflows, The Edge reported.

This comes as Bank Negara Malaysia re-enforces existing rules prohibiting offshore trade of ringgit, amid a ringgit slide following the US presidential election outcome.

The central bank also advised the public to use licenced banks for foreign exchange needs, while foreign fund and asset managers are told to contact banks for advice.

CIMB Investment Bank Bhd today said it expects a further depreciation of the ringgit, down to RM4.80 against the US dollar, in the next six months, due to lack of clarity in the new US administration’s policy.