KL current account seen slipping to deficit as early as this quarter

Kuala Lumpur

MALAYSIA's current account could slip into a slight deficit as early as the current quarter, the Bank of America Merrill Lynch has warned, even as it faces the risks of missing both growth and fiscal deficit targets due to sharply lower oil prices.

This is a "reality check" for Malaysia, its economist, Chua Hak Bin, said in a client note on Tuesday, highlighting a number of pressing problems the nation will face next year.

Battered oil prices have already taken a toll on equities and the ringgit, while the bond market is on edge because foreigners …