The really skillful president is a two-ball juggler. He's got to keep both those balls in the air at the same time -- and be able to catch them.
We have always thought that the Malaysian government's determination to balance its budget has not been very firm. The necessity of higher subsidies, given current policies, is yet another illustration of this.
Reducing the budget deficit more quickly would certainly be a positive factor in the rating sense,
The biggest risk to investment is if the President does not follow through with what he intends to do.
But finally they have and they are moving in the right direction by raising the interest rate. Inflation is relatively high and therefore the higher interest rate will help to stabilize the currency.
