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395311
Thu, 01/28/2016 - 12:58
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2016 Budget Recalibration Will Help Malaysia Maintain Economic Growth, Says Treasury Sec-Gen

PUTRAJAYA (Malaysia), Jan 28 (Bernama) -- The 2016 Budget recalibration exercise would help Malaysia maintain its economic growth this year even if the oil price were to fall to US$25 (US$1 = RM4.20) per barrel, says Treasury's Secretary-General Mohd Irwan Serigar Abdullah. "When we did the recalibration (of the budget), we estimated the oil price at US$25 per barrel. So the (recalibration) budget will remain intact even if the price were to go down to close to US$25 per barrel as we have many measures. "Of course, if it (oil price) goes further down to US$20 or US$15, it will be a world recession and even the oil-producing nations will face financial woes," he told reporters at the Forum on 2016 Budget Recalibration here Thursday. Mohd Irwan was one of the speakers at the forum. Others included Minister in the Prime Minister Department Abdul Wahid Omar and Bank Negara Malaysia's (Malaysia's Central Bank) Governor Dr Zeti Akhtar Aziz. He said the recalibration exercise would enable the government to cut its expenditure by RM9 billion -- RM5 billion would come from reprioritising development projects and rearranging cash flow timeline for less-impact projects. The cut in expenditure by all ministries, including for travel, would cut RM4 billion, he said. Prime Minister Najib Razak earlier announced 11 plans under the 2016 Budget recalibration to counter the current challenging economy. Najib, who is also the Finance Minister, presented several initiatives to put more money into the pockets of the people, address issues associated with the cost of living, continue with assistance for the needy and stimulate domestic economic activity for the benefit of the people. He said world crude oil prices had continued to fall below US$30, which was about 35 per cent lower compared to an asumption of US$48 during the tabling of the 2016 Budget in October. --BERNAMA

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