Najib Plans Unpopular Steps as Ringgit, Bonds Jump Pre-Budget

Malaysian Prime Minister Najib Razak said he’s prepared to take unpopular steps to put the economy on a path to sustainable growth ahead of his budget speech today.

Yields on 10-year government bonds dropped to a three-month low and the ringgit climbed for a fourth week on optimism Najib will rein in spending, further cut state subsidies and introduce a goods and services tax. Fitch Ratings reduced the outlook on the Southeast Asian nation’s investment-grade rating to negative in July, citing rising debt and a lack of budgetary reform, prompting the prime minister to raise fuel prices.