M'SIA'S REVENUE MAY SUFFER IF OIL PRICES FALL SHARPLY

KUALA LUMPUR, Dec 3 (Bernama) -- Malaysia's revenue may take a beating if world
oil prices fall sharply following the global economic crisis, Prime Minister
Abdullah Ahmad Badawi said Tuesday night.

"If oil price continue to slide drastically, our revenue will be affected
as
the percentage of income from oil is high," he told reporters after chairing the
monthly meeting of the Umno supreme council, the party's highest
decision-making body.

"If our revenue dwindles, it will lead to other problems," said Abdullah,
without giving details.

Oil is the biggest revenue contributor to the country's
coffers.

Abdullah said his deputy Najib Tun Razak, who is also Finance
Minister, briefed supreme council members on the current economic status of the
United States, the world's biggest economy.

World oil prices have fallen to below US$50 a barrel following the decision
by the Organisation of Petroleum Exporting Countries (OPEC) to delay the
decision to lower the production quota although supply was higher than demand in
the world market.

Following the sharp fall in global oil prices, the Government yesterday
announced a reduction in the pump prices of petrol and diesel by 10 sen a litre
effective today.

This is the sixth downward revision in fuel prices since August. The last
revision was on Nov 18.

In announcing the reduction, Abdullah said the government decided to
expedite the lower retail price of petrol and diesel to enable the people to
enjoy cheaper fuel prices following the drastic drop in global oil prices.

The RON97 petrol will be sold at RM1.90 a litre today from RM2 while
RON92 at RM1.80 a litre from RM1.90, he said in a statement.

Diesel will be retailed at RM1.80 from RM1.90 a litre, he added.

-- BERNAMA