Msia to boost revenue in 2019 on higher oil price

Dateline 2018-12-28, NST:

Malaysia is expected to receive a boost in its revenue next year on higher oil price, with the local and global analysts predicting the Brent crude to rebound to around US$72-US$75 average a barrel for 2019.

Some analysts have projected as high as RM1.5 billion extra to the government’s coffers next year.

This will be on top of additional revenue gains of between RM4 billion and RM6 billion from new tax measures and government asset sales, as well as savings of around RM6 billion from the introduction of a targeted subsidy scheme, an analyst said.

According to a Bloomberg survey of oil analysts from the world’s biggest banks, the Brent benchmark is expected to rebound to average US$72.5 a barrel in 2019, more than 35 per cent higher than its current price of US$53.27 at press time.

MIDF Research chief economist Dr Kamaruddin Mohd Nor also expects a rebound in oil price but higher at US$75 per barrel.

“We are expecting the same (oil price rebound). This will be good for the government’s coffer,” he told NST Business.

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