S&P warns prolonged oil slump may derail Malaysia's fiscal plan
Add BT as a preferred sourceDeeperDive is a beta AI feature. Refer to full articles for the facts.
[KUALA LUMPUR] Credit rating agency Standard & Poor's said on Tuesday that a prolonged slump in oil prices could derail Malaysia's fiscal consolidation plan and put at risk the government's revised economic growth forecast of 4.5 to 5.5 per cent.
"The risks are that the contracting oil and gas sector could affect activities in other sectors to bring down overall economic growth," YeeFarn Phua, associate director of Sovereign Ratings at S&P said about Malaysia's revised budget announcement.
The ringgit currency fell to a six-year low on Tuesday as the government cut its economic growth forecast, reduced its budget and widened its fiscal deficit target for 2015, to reflect lower oil and gas revenues due to plunging world prices.
REUTERS
Share with us your feedback on BT's products and services
TRENDING NOW
‘We’ve seen the worst-case scenario’: How Indonesia’s Cinema XXI navigated crisis and change
Higher costs, lower returns: Why are Singaporeans still betting on real estate?
S-E Asia tourism takes hit from Middle East crisis, but intra-regional travel could spell hope
Auditors flag uncertainty on Katrina Group’s ability to continue as a going concern
