RAM Rating Services Bhd, expects Malaysia's gA2 sovereign rating to remain intact, following Pakatan Harapan's (PH) victory in the recent 14th General Election.
The rating agency said some economic and fiscal policy changes would create uncertainties in the near term, as details are scant at this juncture, but the strong emphasis by the new leadership on governance and institutional reforms is a long-term positive for the nation's fundamentals.
Malaysia can meet its revenue requirements even after shelving the Goods and Services Tax (GST) by prioritising its projects, increasing the efficiency of the public sector, avoiding wastage and exploring new sources of revenue, says Tan Sri Zeti Akhtar Aziz.
The former Bank Negara governor also expressed her confidence in the country's economy which can be steered towards the right direction and the 100-day time frame is certainly adequate to provide clarity and make necessary adjustments and changes.
Tan Sri Zeti Akhtar Aziz said there will be no turning back on the proposed abolishment of the Goods and Services Tax (GST) which came into effect on April 1, 2015.
"It's (decision to abolish) is final and work is in progress towards the abolishment," said the former central bank governor who is also part of the five-member Council of Eminent Persons.