KUALA LUMPUR, April 21 — The federal authorities has integrated decrease world oil worth into its anticipated deficit this 12 months however will “reprioritise” its deliberate spending if the commodity declines additional in worth, stated Datuk Seri Tengku Zafrul Tengku Abdul Aziz.
Oil worth fell sharply on the worldwide market after Saudi Arabia and Russia triggered a worth battle that got here simply forward of the world-stopping coronavirus illness (Covid-19) pandemic.
The finance minister acknowledged the matter in his assertion right this moment, however sought to guarantee Malaysians that the federal government was ready to adapt.
“The overall preoccupation with oil is comprehensible, provided that it’s intently linked to world geopolitical influences. Nevertheless, what’s extra necessary is to recognise how Malaysia has a diversified financial base.
“Shifting ahead, MOF may even be structural reforms to make sure higher diversification in Malaysia’s financial system, aside from enterprise the required fiscal and financial insurance policies to develop the nation’s financial resiliency,” he stated, referring to the Finance Ministry.
Panic over oil costs have been exacerbated by information studies concerning the worth of oil on the US futures market closing at destructive US$37.63 (RM165) a barrel yesterday because of non-existent demand and inadequate storage.
Nevertheless, the anomaly was restricted to futures contracts expiring in Might and never indicative of present buying and selling costs.
The worth of Brent Crude that Malaysia makes use of as its benchmark is presently hovering round US$21.