OCBC sees oil price ‘relief’ for Malaysia

Optimism here. Go hire the analyst team that made the forecast:

Dateline 2016-01-08, The Sun:

OCBC Bank said oil prices will be on the road to recovery this year which would help to stabilise Malaysia’s economy.
“As our house view has it, the oil price is on track to recover this year, with Brent back to US$55 (RM242) per barrel by year-end. If that pans out, it would be a huge relief for Malaysia,” the bank said in its OCBC Global Outlook 2016 report yesterday.

OCBC said one of the reasons for the poor market sentiment towards the country last year was the perception that it is Asia’s only net oil exporter, with its fiscal balance is most threatened by a drop in the oil price.

“Hence, if the oil price does recover forcefully, such concerns would dissipate,” it added, noting that Malaysia would likely be printing growth rate of 4.7% year-on-year in 2016, which is in line with the growth rate target of 4.8% last year.

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