. . . And Barisan Nasional gets a tick in Sarawak

KUALA LUMPUR - S&P Global Ratings said its ratings on the Malaysian State of Sarawak (A-/Stable/--; axAA/--) are not affected by the results of the election, which saw Malaysia’s ruling Barisan Nasional (BN) party retain power, winning 72 of the 82 seats.

Recent corruption allegations in relation to 1Malaysia Development Bhd had raised the possibility that the Opposition could make inroads, S&P said.

“Instead, BN increased its vote share and number of Parliamentary seats on the back of the popularity of new Chief Minister, Tan Sri Adenan Satem.” 

“We expect the Sarawak Government to maintain its policy direction to promote sustainable economic growth and prudent public finances. We also view the election results as a further strengthening of the State's relationship with the (Malaysian) Federal Government.”

S&P said its ratings on Sarawak reflect its view of the State's very strong budgetary performance and exceptional liquidity. “This is against the backdrop of an evolving but balanced institutional framework.” www.standardandpoors.com (ATI).