KUALA LUMPUR: Malaysian Prime Minister Datuk Seri Najib Razak will announce policy changes, including likely budget revisions, tomorrow to help its oil exporting economy adjust to the impact of slumping global crude prices.
Southeast Asia’s third largest economy relies on oil and gas export revenues to maintain strong growth and control a mountain of debt, and the adverse turn in the crude market has put its current account balance under strain, and ruined budget projections.
A 10 per cent fall in the ringgit currency during the past four months reflects investors’ mounting worries, as the government’s budget for 2015 was based on overoptimistic forecasts for oil prices and economic expansion.
Quoted by state-run Bernama news agency today, Najib flagged the need for change to meet the more straitened times.An accurate and wise approach is necessary to mitigate the effects of the oil price slump on economic growth, national revenue and the value of the ringgit,” Najib said.
Bernama reported that he would announce “economic modifications and interventions” tomorrow. A government official told Reuters that Najib, who also runs the finance ministry, was also likely to announce a revised 2015 budget.