AFP, Kuala Lumpur :
Malaysia on Tuesday trimmed its 2015 growth forecast and said its fiscal deficit would be wider than expected after the sharp fall in global oil prices threw a wrench in the petroleum-exporting nation’s economic plans.
Prime Minister Najib Razak called the situation a “reality check” but assured Malaysians the country was not in trouble, unveiling measures he said would keep Southeast Asia’s third-largest economy moving forward.
“We are not in crisis. Indeed, we are taking pre-emptive measures following the changes in the external global economic landscape which are beyond our control,” Najib said in a nationally televised address.
Najib said the government had lowered its growth estimate to a 4.5-5.5 percent range, from an earlier projection of up to 6 percent.
The target for reducing the fiscal deficit was also tempered to 3.2 percent of GDP, from an earlier 3.0 percent target stated in a 2015 budget tabled three months ago.
World oil prices have plummeted by more than 50 percent in recent months, dragging the ringgit currency to around six-year lows. The stock market has stumbled and business confidence has slid, according to surveys.
Malaysia derives 30 percent of state income from energy exports and pressure had been growing for government steps to assuage rising concerns over the economy.
Malaysia on Tuesday trimmed its 2015 growth forecast and said its fiscal deficit would be wider than expected after the sharp fall in global oil prices threw a wrench in the petroleum-exporting nation’s economic plans.
Prime Minister Najib Razak called the situation a “reality check” but assured Malaysians the country was not in trouble, unveiling measures he said would keep Southeast Asia’s third-largest economy moving forward.
“We are not in crisis. Indeed, we are taking pre-emptive measures following the changes in the external global economic landscape which are beyond our control,” Najib said in a nationally televised address.
Najib said the government had lowered its growth estimate to a 4.5-5.5 percent range, from an earlier projection of up to 6 percent.
The target for reducing the fiscal deficit was also tempered to 3.2 percent of GDP, from an earlier 3.0 percent target stated in a 2015 budget tabled three months ago.
World oil prices have plummeted by more than 50 percent in recent months, dragging the ringgit currency to around six-year lows. The stock market has stumbled and business confidence has slid, according to surveys.
Malaysia derives 30 percent of state income from energy exports and pressure had been growing for government steps to assuage rising concerns over the economy.
