Plunging crude oil prices, weak commodity prices, depreciating RM, high sovereign debts, soaring public expenditure, increasing household debt & internal political problems -- these are the ingredients for an unprecedented economic challenge for Malaysia. With every USD1 drop in crude oil price, Malaysia stands to lose RM600m-RM650m per year based on current exchange rate. When the budget 2015 was presented, the assumption was that the global crude oil would be USD110 per barrel & today it is hovering around USD68 (Brent crude as benchmark). Malaysias oil is sold at around USD5 below Brent crude. Just do the simple maths & we would know how much Malaysia would fall behind in deficit.
Posted on: Fri, 05 Dec 2014 02:52:52 +0000
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