KUALA LUMPUR: Global ratings agency Moody’s said on Thursday that a stunning election upset in Malaysia puts the country into uncharted territory and some of the opposition’s campaign promises could be credit negative for its sovereign debt rating unless there are adjustments.
Dr Mahathir Mohamad’s Pakatan Harapan alliance secured an unexpected victory in the polls on Wednesday against Najib Razak’s Barisan Nasional coalition.
“Some campaign promises, if implemented without any other adjustments, would be credit negative for Malaysia’s sovereign,” Moody’s said in a statement.
These include the proposed abolishment of the goods and services tax (GST) and the reintroduction of fuel subsidies, the statement said.