It’s tough to beat out all the negative news out there. After Fortune, at least we now have another piece of good news. This time, from Moody’s Investors Service. It has affirmed the government bond and issuer ratings of the government of Malaysia at A3 and the outlook remains positive. What is A3? A3 means the same as A-. Remember the rating from Fitch? Read here: A- rating down soon, Not Yet, but soon. A3 means ‘Upper Premium Grade’. Pretty good description yeah. that’s already two international rating agencies as well as an international business magazine telling the world that your money should still be pretty safe in Malaysia. Yes I know, your colleague tells you otherwise. I am pretty sure your colleague gets his sources from somewhere. So, decision is yours on whom best to rely upon.
Moody’s said that main reason for this reaffirmation is because the government is sticking to its policy of deficit reduction as well as the fiscal reform which will help in defending against the cyclical commodity price shocks. Malaysia’s fundamental is able to withstand some of the adverse external environment, lower oil prices and even the global financial market volatility. These are where we are strong: macroeconomic stability, domestic capital market depth, and a favourable government debt structure. In brief, as at now, the Malaysian government is still doing the right things and none are so bad that the ratings would be going down suddenly where Moody’s is concerned.
I think some readers would already know that I see 2015 continuing as another year of opportunity. Negative sentiments are still prevailing in the market and this represents a huge opportunity unless we choose to just miss it and wait. Fundamentally, there are still way too many companies on Bursa worth buying to keep but always buy undervalued counters. Do read books on Warren Buffet to understand what he meant by ‘undervalued’. Oh yeah, whether during good times or bad times, there are ALWAYS speculative counters waiting for people to buy and perhaps earn huge or lose huge. ALWAYS try not to be tempted. I said try because majority would still be tempted anyway. Well, good luck, perhaps you may just get lucky this time. Happy reading and deciding.
written on 3 Feb 2015
Next suggested article: Malaysia and Mongolia, same rating. 🙂
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