Malaysian oil and gas companies feel the pinch


Isn’t this article about 6 months late? University students, plan your careers now.

Dateline 2015-09-15, The Star:

Apart from the value of the ringgit to the US dollar, the other closely watched number if the price of crude oil.

For Malaysia, a net exporter of oil and gas, the price of crude oil has a major implication on the Malaysian economy.

The Government’s Budget is premised on the average price of Brent crude oil at US$55 a barrel and right now, the average for the year is close to that. With Brent trading below that number, it is very likely that the average for the year is going to come in lower than what the Government had forecast months ago when it revised its budget for 2015.

But the implication does not stop at the Government’s fiscal position. The collapse of the price of crude oil has had a major effect on companies, employment and the economy.

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