There is no need to be in quandaries amidst the fluctuating oil prices and slump in ringgit value.
This is because our economic fundamentals and banking systems are very strong, said Malaysian Economic Association (MEA) president, Tan Sri Mohd Sheriff Mohd Kassim.
"It is very reassuring to know that Malaysia is not in an economic crisis, as said by the Prime Minister (Datuk Seri Najib Razak) today.
"With the decline in oil prices, I agree that we must continue with the fiscal consolidation... measures that have been introduced by the government such as the fuel subsidy," he said when contacted.
When questioned about the major cuts in the government's operating expenditures, he said the amount of money saved from entertainment expenses and grants allocated for various government statutory bodies, among others, can now be spent in a much thriftier manner.
"The good news is, the development expenditures are retained. With developmental projects, particularly those pertaining to urban transport, infrastructure and health not being affected by the current economic turmoil, growth is ensured in future," he said.
When asked if there is a possibility that the prime minister might have to make another announcement in the near future with regards to the volatile global oil price, Mohd Sheriff said, "Some analysts have said that the current price drop is temporary and can be recovered.
"We may not recover to the initial oil price which was around US$115 (RM415) per barrel, but for the price to increase to some US$70-80 (around RM250 to RM290) per barrel is a likely situation."
Mohd Sheriff pointed out that although the oil and gas sector is an important one, it is not the biggest.
"Lower price means lower tax and lower revenue, but as we have a diversified economy together with the GST (Goods and Services Tax) and various measures to cut unnecessary expenditure, the deficit can slowly be reduced," he said.
The tourism, manufacturing, export and construction sectors are still seen as very strong areas for economic performances, he said.
He said, the 4.5 percent to 5.5 percent projected GDP growth is a reasonably good figure even if the initial range was between five and six percent.
Mohd Sheriff added that Malaysians should be confident in the government's capacity in solving this issue.
In a special announcement today, Najib had outlined several measures by means of modifications and interventions to strengthen Malaysia’s economic resilience, following a change in the global economic scenario.
Among the measures, the government's development expenditure for 2015 would be fully maintained, but its operating expenditure is expected to be reduced by some RM5.5 billion.
The country's fiscal deficit target would also be revised to 3.2 percent of GDP in 2015 – higher than the three percent set out in the Budget, but lower than the 3.5 percent in 2014, and in line with the government’s continuing commitment to fiscal consolidation.
Also, the 2015 National Service Training Programme (PLKN) will be deferred to enable the programme to be reviewed and enhanced with savings expected at RM400 million.
Read the full text of Najib's speech here.
Sathesh Raj
Tue Jan 20 2015
![Economic changes: No need for Malaysia to panic, says MEA Economic changes: No need for Malaysia to panic, says MEA](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/http://img.astroawani.com/2015-01/71421744608_295x200.jpg)
MOHD SHERIFF: We shouldn't panic as our economic fundamentals and banking systems are very strong.
AWANI 7:45 [15/08/2024] – Nidza Afham selamat dikebumikan | Pembunuhan kejam | Sangkal dakwaan pengguna X | Srettha dilucut jawatan PM
#AWANI745 malam ini bersama Irfan Faruqi langsung dari Johor Bahru;
- Kematian Nidza Afham tiada unsur jenayah, punca masih tunggu siasatan makmal
- Pemain bola bawa kerambit masa gaduh rupa-rupanya senarai 'wanted' polis
- Produk Malaysia mendunia, kerajaan sasar tembusi pasaran antarabangsa
- Lebih 24 jam terkandas di Jeddah, jemaah umrah tuntut penjelasan Malaysia Airlines
- Kematian Nidza Afham tiada unsur jenayah, punca masih tunggu siasatan makmal
- Pemain bola bawa kerambit masa gaduh rupa-rupanya senarai 'wanted' polis
- Produk Malaysia mendunia, kerajaan sasar tembusi pasaran antarabangsa
- Lebih 24 jam terkandas di Jeddah, jemaah umrah tuntut penjelasan Malaysia Airlines
AWANI Ringkas: Jenazah ibu MB Kedah selamat dikebumikan
Ikuti rangkuman berita utama yang menjadi tumpuan sepanjang hari di Astro AWANI menerusi AWANI Ringkas.
AWANI Ringkas: Jenazah Nidza Afham selamat dikebumikan
Ikuti rangkuman berita utama yang menjadi tumpuan sepanjang hari di Astro AWANI menerusi AWANI Ringkas.
![Pemecatan Srettha sebagai PM Thailand mengejutkan - Pemerhati politik Pemecatan Srettha sebagai PM Thailand mengejutkan - Pemerhati politik](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-08/41723628910_TBSretthaThavisin.jpg)
Pemecatan Srettha sebagai PM Thailand mengejutkan - Pemerhati politik
Pertempuran antara ideologi parti rakyat dan parti-parti gabungan semasa akan menjadi semakin sengit.
![MCMC bakal lancar Kempen Kesedaran Keselamatan Dalam Talian - Teo MCMC bakal lancar Kempen Kesedaran Keselamatan Dalam Talian - Teo](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-06/61719727105_TeoNieChing.jpg)
MCMC bakal lancar Kempen Kesedaran Keselamatan Dalam Talian - Teo
Kementerian Komunikasi melalui Suruhanjaya Komunikasi dan Multimedia Malaysia (MCMC) bakal melancarkan Kempen Kesedaran Keselamatan Dalam Talian yang komprehensif dalam masa terdekat.
![Nenggiri miliki potensi jadi destinasi ekopelancongan Nenggiri miliki potensi jadi destinasi ekopelancongan](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-08/41723703023_DunNenggiriekope.jpg)
Nenggiri miliki potensi jadi destinasi ekopelancongan
Pemandangan suasana pergunungan dalam kawasan Nenggiri yang dihiasi landskap menarik sering mengundang kunjungan pelawat untuk menikmati keindahannya, kata Malim Gunung Mohamad Saifful Rizal Jusoh.
![Pemenang emas Olimpik Indonesia Rizki Juniansyah ditawar kerja kerajaan Pemenang emas Olimpik Indonesia Rizki Juniansyah ditawar kerja kerajaan](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-08/61723726414_TBRizkiJuniansyah.jpg)
Pemenang emas Olimpik Indonesia Rizki Juniansyah ditawar kerja kerajaan
Rizki Juniansyah, yang memenangi pingat emas dalam acara angkat berat 73kg lelaki di Sukan Olimpik Paris 2024 telah menerima tawaran pekerjaan daripada Kementerian Belia dan Sukan Indonesia.
![Rusia kosongkan lebih banyak kawasan di Kursk berikutan pencerobohan Ukraine Rusia kosongkan lebih banyak kawasan di Kursk berikutan pencerobohan Ukraine](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-08/61723726901_TBMissile.jpg)
Rusia kosongkan lebih banyak kawasan di Kursk berikutan pencerobohan Ukraine
Daerah itu mempunyai lebih 17,500 penduduk berdaftar sebelum Rusia melancarkan pencerobohan besar-besaran ke atas Ukraine pada Februari 2022.
![Ringgit ditutup rendah berbanding dolar AS Ringgit ditutup rendah berbanding dolar AS](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-04/41713876066_TBringgitmalaysia.jpg)
Ringgit ditutup rendah berbanding dolar AS
Data CPI AS untuk Julai turun kepada 2.9 peratus pada asas tahunan berbanding tiga peratus pada Jun.
![Lesen Ali Baba: Pembantu penguat kuasa DBKL didenda RM13,000 Lesen Ali Baba: Pembantu penguat kuasa DBKL didenda RM13,000](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-08/71722937565_courtgavelmahkam.jpg)
Lesen Ali Baba: Pembantu penguat kuasa DBKL didenda RM13,000
Hakim Azura Alwi menjatuhkan hukuman itu terhadap Syahrul Riza Md Yusof, 42, dan memerintahkannya dipenjara 21 bulan, jika gagal membayar denda.
![KDNK China meningkat 5.3 peratus pada suku pertama 2024 KDNK China meningkat 5.3 peratus pada suku pertama 2024](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2023-10/51697098840_GenericChinaFlag.jpg)
KDNK China meningkat 5.3 peratus pada suku pertama 2024
Ekonomi China berkembang lebih kukuh daripada jangkaan pada awal tahun ini, sebahagian besarnya disebabkan oleh aktiviti kilang yang teguh.
![Rusia kembali tersenarai 10 ekonomi terbesar dunia Rusia kembali tersenarai 10 ekonomi terbesar dunia](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2023-03/81678520584_TBrusiaflag.jpg)
Rusia kembali tersenarai 10 ekonomi terbesar dunia
Rusia kembali tersenarai dalam sepuluh ekonomi terbesar dunia dengan menduduki tempat kelapan buat kali pertama sejak 2014.
![Ekonomi Malaysia catat pertumbuhan KDNK 5 peratus suku pertama 2022 Ekonomi Malaysia catat pertumbuhan KDNK 5 peratus suku pertama 2022](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2022-05/81652417211_GabenorBankNegara.jpg)
Ekonomi Malaysia catat pertumbuhan KDNK 5 peratus suku pertama 2022
Pertumbuhan ini disokong terutamanya oleh permintaan dalam negeri yang bertambah baik.
![Konflik Myanmar: PBB beri amaran 'perang saudara skala penuh' boleh tercetus Konflik Myanmar: PBB beri amaran 'perang saudara skala penuh' boleh tercetus](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2021-08/41627810040_Myanmar.jpg)
Konflik Myanmar: PBB beri amaran 'perang saudara skala penuh' boleh tercetus
Pertempuran di antara tentera dan pasukan pertahanan tempatan yang berterusan akan menyebabkan rakyat dalam ketakutan dan menderita, serta tidak mempunyai kebebasan untuk bersuara.
![Norma baharu warga Malaysia di Jepun Norma baharu warga Malaysia di Jepun](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2021-02/81614099035_JapanJepunoutbre.jpg)
Norma baharu warga Malaysia di Jepun
Penulis berkongsi kisah pahit manis mengharungi pandemik ketika berjauhan daripada ibu bapa, sanak saudara, sahabat dan rakan taulan di tanah air.
![Perisian tidak sah: Gayatri seru kerajaan cari strategi kukuh bantu industri perfileman Perisian tidak sah: Gayatri seru kerajaan cari strategi kukuh bantu industri perfileman](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2021-02/71613656002_GayatriSulinPillai.jpg)
Perisian tidak sah: Gayatri seru kerajaan cari strategi kukuh bantu industri perfileman
Menurut Gayatri, pihaknya cukup terasa dengan impak cetak rompak kerana tidak banyak saluran di Malaysia yang boleh menjual produk mereka.
![Pharmaniaga siap siaga edar vaksin COVID-19 Pharmaniaga siap siaga edar vaksin COVID-19](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2020-11/81606127009_TBVaccineCovid.jpg)
Pharmaniaga siap siaga edar vaksin COVID-19
Pharmaniaga Berhad (Pharmaniaga) telah menubuhkan pasukan petugas dan bersedia mengedarkan vaksin COVID-19 ke seluruh negara yang dijangka boleh didapati pada suku pertama tahun depan.
![Pakej rangsangan pandemik dunia mampu pulihkan perubahan iklim Pakej rangsangan pandemik dunia mampu pulihkan perubahan iklim](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2020-10/41602804510_950x600.jpg)
Pakej rangsangan pandemik dunia mampu pulihkan perubahan iklim
Dunia akan kembali ke landasan betul dalam hal memulihkan isu perubahan iklim dengan melaburkan satu per 10 daripada 12 trilion dolar pakej rangsangan untuk pandemik.
![PKP: Sektor berasaskan penggunaan, jalinan ekonomi harus diberi keutamaan PKP: Sektor berasaskan penggunaan, jalinan ekonomi harus diberi keutamaan](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/http://img.astroawani.com/2020-04/41586751393_MohdYusofSaari.jpg)
PKP: Sektor berasaskan penggunaan, jalinan ekonomi harus diberi keutamaan
Dua aspek tersebut meliputi sektor utama berasaskan penggunaan dan jalinan ekonomi.
![Beware of the Fitch rating that can hurl Malaysia into a ditch Beware of the Fitch rating that can hurl Malaysia into a ditch](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/http://img.astroawani.com/2020-04/81585759822_KualaLumpurCity.jpg)
Beware of the Fitch rating that can hurl Malaysia into a ditch
Credit rating agencies cannot be trusted, as the key navigator to steer the macro or micro economy of Malaysia, says Dr Rais.