Fitch maintained Malaysia’s rating at BBB+ with a stable outlook. The country is recognized for its strong growth potential but faces challenges such as high public debt, a limited revenue base, and potential political hindrances to policy. The general government deficit is projected to decrease to 2.8% of GDP by 2025, down from an average of 5.2% between 2020 and 2022. However, immediate, and extensive fiscal adjustments, including subsidy removals and new consumption taxes, are deemed politically cumbersome in the short term.