THE Pakatan Harapan (PH) presidential council is pushing for a no-confidence motion against Prime Minister Muhyiddin Yassin following the Fitch Ratings downgrade on Malaysia’s sovereign credit rating.

In a statement, the council said it is crucial to expedite the motion and allow it to be tabled in the current Dewan Rakyat meeting to put an end to speculations on political instability and restore confidence on governance.

“This is a major slap to the government, especially the finance minister. It shows that the government’s failure in policy planning and governance is an extension of the political instability which has been going on since the change in government in March,” it said in a statement after a meeting today.

The council said it also shows that measures taken by Finance Minister Tengku Zafrul Tengku Abdul Aziz have been ineffective in maintaining confidence although the full impact of the rating downgrade on the economy is yet to be seen.

The statement said Muhyiddin should promote transparency and good governance by undertaking open tenders and appointing professionals instead of politicians to roles in government-linked companies.

“Unfortunately, this didn’t happen under the current administration,” it said.

The statement was signed by PKR president Anwar Ibrahim, DAP secretary-general Lim Guan Eng and Amanah president Mohamad Sabu.

Fitch downgraded Malaysia’s long-term foreign currency issuer default rating (IDR) to “BBB+” from “A-” on the back of lingering political uncertainty and substantial impact of Covid-19 on the economy.

A “BBB” rating indicates that expectations of default risk are currently low and the capacity for payment of financial commitments is considered adequate, but adverse business or economic conditions are likely to impair this capacity.

The credit rating agency said the Covid-19 crisis has weakened several of Malaysia’s key credit metrics.

“The authorities responded swiftly to the crisis, with material relief measures for affected individuals and businesses. Nevertheless, the impact on Malaysia’s economy has been substantial, and has added to Malaysia’s fiscal burden, which was already high relative to peers going into the health crisis,” it said in a note last week. – December 7, 2020.