Malaysia's hard-won fiscal progress falls victim to oil price rout

Singapore

JUST when Malaysia was beginning to plug the holes in its public finances, the prospect of a sharp reduction in oil revenue is threatening to undermine fiscal progress and weaken the currency.

Petronas is playing spoiler. The state energy company recently warned that its contribution to the government's exchequer - in the form of dividends, taxes and royalties - could slide 37 per cent next year from an estimated 68 billion ringgit (S$25.9 billion) in 2014.