'THEY KEPT ASKING WHAT ELSE IS HIDDEN': Ratings agencies worried about Malaysia - Wong Chen

The credit rating agencies were concerned with the way Malaysian government handling investors' confidence, said an opposition lawmaker.

"Fitch Ratings, Standard & Poor's Rating and Moody Ratings will interview few parliamentarians, included me, every four months," said Wong Chen (PKR-Kelana Jaya) while debating the 11th Malaysia Plan.

"They always asked the same question, 'what else is hidden?'," he said.

In the interview held last week, he said he raised issues like currency manipulation, letters of understanding, letters of guarantee and letters of support, according to Wong.

"Fitch (Ratings) had asked me, 'Is the letter of support in the system?'," he said.

The letter of guarantee issued by the government in this case relates to 1MDB, was in fact a support letter, he said.

The agencies had asked if the support letters was in the system because few ministers had issued such letters, Wong said.

'1MDB debt won't sink economy'

Wong was referring mainly to the circular issued to investors for the purpose of raising US$3 billion (RM10.02 billion) in bonds for 1MDB Global Investment Limited, a wholly-owned subsidiary of the state investment firm.

It was deems as a guarantee by Malaysian government, but the government denied that in the early stage.

Earlier, Wong said he differed with his Pakatan colleagues, as he feels that 1MDB’s RM42 billion debt of the 1MDB will not sink the country's economy

Even if 1MDB lost the entire RM 42 billion, it would not destroy our economy, as the amount was not huge in context of the entire economy, he said.

He, however, felt the way the government is handling the issue is impacting investor's confidence, which impacts the economy gravely. - M'kini