Malaysia: Putrajaya to ‘reprioritise’ spending after oil revenue drop, says Tengku Zafrul

• PUTRAJAYA will reprioritise expenditures to meet its fall in revenue, should oil prices decline below the government’s annual average estimates, said Finance Minister Tengku Zafrul Tengku Abdul Aziz.
• “The government is monitoring the development of oil prices closely,” he said in a statement. Oil prices have plummeted with Brent crude, the global benchmark price for oil, trading at around USD16 a barrel.
• “Our calculation on the impact of lower oil prices have been factored into the deficit forecast of more than 4% of the gross domestic product,” Tengku Zafrul said.
• “The general preoccupation with oil is understandable, given that it is closely linked to global geopolitical influences. However, what is more important is to recognise how Malaysia has a diversified economic base.”
• Apart from undertaking fiscal and monetary policies to maintain the nation’s economic resiliency, Tengku Zafrul said the Finance Ministry will also be looking at structural reforms “to ensure better diversification” in Malaysia’s economy moving forward.

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