STUDY TO DECIDE ON MINIMUM OIL PRICE

IPOH (Malaysia), Nov 24 (Bernama) -- The government is studying the global
oil price situation before fixing the minimum or ceiling price for the commodity
in view of the current price fluctuation.

Deputy Finance Minister Ahmad Husni Hanadzlah said the study would not
affect the government subsidy and the fuel price would only be fixed after
taking into consideration the various factors that contributed to the price
fluctuation.

"However, if the price goes down further, the surplus from the subsidy
allocation will be used for development purposes, like the RM7 billion derived
after the global crude oil price went down to US$70 a barrel last month.

"The fast drop from US$147 to US$50 a barrel now is due to the global
economic recession," he told reporters after handing over the approval letter
for a RM290,000 allocation for a new building for the Al-Hassaniah surau in
Kampung Seberang, Sungai Tapah, near this northern city on Sunday.

"Due to falling demand....there is a large stockpile of the commodity in
the market, resulting in the sharp drop in price, but when the economy is
robust, demand will increase and the price will go up again," explained Husni
who is also the member of parliament for Tambun.

He said the subsidy given at present was made up of the difference between
the price of crude oil in the market and that at the local petrol
stations.

Husni also said that the global economic recession had not had a serious
impact on Malaysia's economy on the whole.

"The country's economic growth this year has been expected at five per
cent, down 0.7 per cent from the original target due to the global economic
recession...and we are putting our target for next year at 3.5 per cent," he
said.

On the allocation for the surau, Husni hoped the Kampung Seberang residents
would use the surau to propagate Islam and to produce excellent human capital
for the country's development.
-- BERNAMA