MONEY MASTER

S&P Global Ratings has reaffirmed Malaysia’s sovereign credit rating at  ‘A-’ with a Stable outlook , underscoring confidence in the country’s diversified economy, steady fiscal consolidation and policy reforms. Policy Environment Supports Rating The agency said Prime Minister Anwar Ibrahim’s administration has created a more favorable policy climate, enabling reforms and fiscal measures to gain traction. “The stable outlook reflects our expectation that Malaysia’s growth momentum and prevailing policy environment will allow modest improvements in fiscal performance over the next two to three years,” S&P noted. Growth Outlook 1H 2025 GDP : Expanded 4.4%, driven by resilient household spending, strong labor market, subdued inflation and robust investment in manufacturing and services. Full-year projection : Growth of 4%–4.8%. External Position Remains Strong Malaysia has recorded  current account surpluses for over two decades . S&P expects the surplus to remain aro...

Indian conglomerates are expected to triple their capital spending to $800 billion in the next decade, according to S&P Global Ratings , with major investments in green hydrogen, clean energy, semiconductors, electric vehicles (EVs) , and aviation . Leading business groups such as Adani Group, Reliance Industries Ltd. , and Tata Group will collectively contribute $350 billion toward these sectors. This investment aligns with India's broader vision to reduce its reliance on fossil fuels and achieve net-zero carbon emissions by 2070 , a transition that will require $12.4 trillion in investments. The shift will also focus on developing new business sectors while other conglomerates, such as Birla, Mahindra, and Hinduja , will continue to focus on expanding their existing businesses, driving an additional $400 billion to $500 billion in investments. S&P notes that Indian conglomerates have an advantage over single-business competitors in capital-intensive sectors . How...

  S&P Global Ratings has forecast an increase in sovereign foreign-currency debt defaults over the next decade, driven by rising debt levels and increased borrowing costs on foreign currency obligations. The ratings agency noted that many governments face escalating costs associated with servicing foreign debts, with some spending nearly 20% of general government revenues on interest payments before defaulting. Factors contributing to this pressure include rising inflation , currency devaluation , and shocks to trade terms , all exacerbating the burden of hard currency debt. Additionally, sovereigns with a significant portion of government debt in foreign currency are more vulnerable to these pressures, according to S&P. Giulia Filocca , an S&P Global credit analyst, highlighted in a report that no single measure consistently predicts sovereign defaults, noting that weak institutional, fiscal, and debt composition factors have driven most defaults from 2000 to 2023...