KUALA LUMPUR, Dec. 26 (Xinhua) -- MARC Ratings has affirmed its unsolicited public information sovereign rating on Malaysia at AAA with a stable outlook based on the rating agency's national rating scale.

The Malaysia-based rating agency said in a recent statement that the AAA rating reflects Malaysia's credit strengths, including an open and increasingly diversified economy, sound monetary policy, a resilient financial sector, and continued progress in structural and institutional reforms.

"Economic growth has remained resilient in 2025 despite external uncertainties and is expected to be sustained in 2026, supported by strengthening foreign investments, particularly in manufacturing and high value-added services, alongside resilient household consumption and a stable labor market," it noted.

The stable outlook also reflects MARC Ratings' expectation that Malaysia will sustain healthy economic growth, continue improving fiscal efficiency, and make further progress in addressing structural constraints, including broad-based subsidies, revenue leakages, and elevated public debt.

Looking ahead, it highlighted that the key priorities for strengthening Malaysia's credit profile include continued improvement in fiscal metrics while moderating debt accumulation through sustained fiscal consolidation efforts and ensuring the timely delivery of planned economic targets. ■