PETALING JAYA: Malaysia is not facing an economic crisis, with the economy remaining strong despite a global slowdown and the drop in crude oil prices.
In an hour-long interview with TV3 aired Wednesday night, Prime Minister Datuk Seri Najib Tun Razak said he did not foresee any retrenchments, fewer jobs or income drops for workers here.
However, he conceded that the slowdown could result in a lower rate of new jobs emerging in the marketplace.
"This does not mean we are facing a crisis, the number of workers will increase but at a slower rate," he said.
Najib also said Malaysia's economic fundamentals were strong enough to withstand the challenges caused by the drop in crude oil prices, which was the reason behind the budget revisions announced on Tuesday.
"What was done was a revision of the operating expenditure which was reduced by RM5.5bil to offset the reduction of revenue." he said, highlighted that the RM48.5bil allocated for development remained unchanged.
Najib said the impact of the drop of revenue would also be mitigated from the fact the Government no longer subsidised petrol and diesel.
He also said April 1 remained the best date to implement GST due to a relatively low inflation rate.
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