Moody’s regards Malaysia's (A3 stable) credit profile as being underpinned by its large, diversified and competitive economy, ample natural resources and strong medium-term growth prospects. A large pool of domestic savings supports the high government debt burden and lowers liquidity risk. Credit challenges include the government's narrow revenue base, which limits fiscal flexibility in response to shocks such as the coronavirus pandemic, as well as vulnerability to volatility in capital flows, given high foreign investor participation in domestic markets.