KUALA LUMPUR, May 5 (Xinhua) -- Malaysia is among the most resilient emerging markets to global shocks, Moody's Ratings said Tuesday.

The rating agency said in a report that Malaysia, alongside India, Thailand, Indonesia and Mexico, has consistently shown strength during periods of market stress.

It noted that these countries have shown durable resilience across market indicators, where shocks are absorbed through price adjustments rather than financing constraints.

"An improving composition of government spending has helped maintain investor confidence in Malaysia," it noted.

However, Moody's said Malaysia's resilience is partly conditional. While recent fiscal reforms signal progress and may strengthen buffers over time, fiscal space remains constrained by a narrow and volatile revenue base.

As such, the country's ability to weather future global shocks will depend on the effective implementation of further reforms. ■