Najib to announce measures to tackle oil price drop

Datuk Seri Najib Razak says he will announce adjustments in the wake of a global oil price drop which has affected Malaysia's economy. – Reuters file pic, January 19, 2015.

Putrajaya will announce measures to cope with dropping global oil prices tomorrow, Prime Minister Datuk Seri Najib Razak said today.

“Tomorrow morning I will announce the adjustments that are needed, intervention that is needed in a scenario where we need to act more proactively,” Najib said during the monthly assembly at the Prime Minister’s Department in Putrajaya, this morning.

Falling global oil prices and a weakening ringgit have forced Putrajaya to relook Budget 2015.

Last week, Najib said the budget might be restructured in view of current developments.

On January 1, The Malaysian Insider reported that Putrajaya would focus domestic investments and spending amid a gloomy economic outlook.

It ordered all government-linked companies and statutory bodies to hold off foreign purchases.

"After taking into consideration the uncertain world economic outlook in 2015, the government on December 17 is of the opinion that domestic consumption must be increased to generate and support the country's economy," according to a Treasury circular.

"In relation to that, and to support the government's efforts to increase domestic consumption, government-owned and linked companies, statutory bodies and subsidiaries must give priority to domestic investments and immediately cease acquiring foreign assets to reduce the outflow of funds," said the circular dated December 26, 2014.

- TMI