Malaysia’s diversified economy can cushion lower oil price impact


Dateline 2015-01-25, TMI:

Malaysia’s diversified economy provides a significant cushion so that the magnitude of the impact from lower oil prices is relatively limited, said the World Bank.

Senior country economist for Malaysia, Dr Frederico Gil Sander, said the impact of weakening oil prices would also be offset by the implementation of the Goods and Services Tax and raising revenue from other taxes that were not related to oil and gas (O&G).

“Of course, the oil price slump still creates challenges, but these are much more manageable compared to countries where oil revenues reach 95% of government receipts,” he told Bernama.

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