S&P Global Ratings is upbeat about Malaysia’s prospects and said a rating upgrade is possible if the country can improve its total revenue to GDP ratio.

S&P sovereign and international public finance ratings for Asia Pacific senior director Tan Kim Eng suggested that the government improve its total revenue as a percentage of GDP as the current base was relatively small.

“However, we do see a lot more room for improvement in terms of the country’s revenue, by focusing more on nation-building initiatives, education reforms and infrastructure building, and still not threaten the stability of the country’s fiscal balance sheet.

“We are also quite upbeat of Malaysia’s prospects and forecast, going forward,” said Tan, who spoke during a panel discussion at the 'Malaysia: A new dawn' investors conference in Kuala Lumpur today.

The conference, officiated by Prime Minister Dr Mahathir Mohamad, was jointly organised by Malayan Banking Bhd, CIMB Group Holdings Bhd and RHB Banking Group.

- Bernama