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Sliding oil prices raise Malaysia's default risk

PM has widened fiscal deficit target and cut growth forecast after fuel fell below US$50

RELIANCE ON OIL: The government derived 29 per cent of its RM225 billion revenue in 2014 from crude, including a RM29 billion dividend from state energy company Petroliam Nasional Bhd, or Petronas.

Kuala Lumpur

MALAYSIA'S default risk is heading for the longest rising streak in a year after Prime Minister Najib Razak said that sliding oil prices mean the government will miss deficit and growth targets.

The cost of protecting sovereign debt against non-payment has leapt 21.5