Second Finance Minister Datuk Johari Ghani Abdul Ghani re-affirmed the freeze in the development of high-rise luxury residential projects.
KUALA LUMPUR: The impact of rising global oil prices on Malaysia’s revenue will only be known after one year, said Second Finance Minister, Datuk Seri Johari Abdul Ghani.
He said the ups and downs of oil prices would not provide accurate expectations on additional revenue as the oil price announced during the presentation of Budget 2018 was an estimated annual average price.
“During the Budget 2018 presentation, the government estimated 2018’s petroleum revenue to average RM37.8bil, including petroleum income tax, royalties and ancillary income from Petronas.
“The estimate was based on average oil price of US$52 per barrel. For the period of Jan 1 to Feb 23, 2018, global average oil price was US$67.15 per barrel,” he said at the Dewan Rakyat here today.
Johari said this in reply to an oral question from Datuk Seri Dr Wan Azizah Wan Ismail (PKR Permatang Pauh), who asked the Finance Ministry on the increase in revenue from petroleum products following the rise in global oil prices since the announcement of Budget 2018.
On average, Johari said, for every US$1 per barrel increase in global oil price, the government’s revenue would increase by around RM300mil a year.
He said the difference between US$67 and US$52 per barrel for a period of less than two months would not provide an accurate picture on the real impact as oil prices were always rising and falling.
“For example, if average oil price was US$67 per barrel for the entire year, based on an estimate where we will see a RM300mil revenue increase for every US$1 above US$52 per barrel, then we will have a RM4.5bil increase in revenue.
“If the average annual oil price is US$60 per barrel, we will see an additional RM2.4bil in annual revenue,” he said.
Johari said that any additional oil revenue would be placed into an account to be used for the country’s development. - Bernama
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