M’sia to lose RM12b in revenue if price drops to US$20

AmBank Group chief economist Anthony Dass said the banking sector is unlikely to be stretched significantly from the fall in oil prices and the weakening ringgit. He attributed it to the healthy fundamentals of banks, reflected by strong capitalisation, steady loans and deposit growth, ample liquidity and low non-performing loan (NPL) levels.

PETALING JAYA: The plunge in crude oil prices is likely to cause the government to lose billions of ringgit in oil revenue that could see the fiscal deficit balloon under current spending plans.

At the price of US$48 per barrel for oil, Malaysia stands to have RM4.5bil shaved off from its oil revenue. And should the prices plummet to the range of US$20 to US$25 per barrel, the additional losses would be to the tune of between RM11.1bil and RM12.6bil.