Oil and gas woes beset Malaysia's economic revival

With crude demand plunging, KL can't tap Petronas for more funds

Falling oil and gas prices are a double whammy for Malaysia's economy as the Muhyiddin Yassin administration wrestles with the fallout from the Covid-19 pandemic. PHOTO: REUTERS
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Malaysia does not have deep government reserves to draw from, and will need to rejig budget 2020 allocations and even designate the RM19 billion wage subsidy as development expenditure to keep from busting spending limits.

The central bank has increased its dividend to RM3.5 billion from RM2 billion last year and Petronas is expected to part with proceeds from stake sales in listed subsidiaries last year.

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A version of this article appeared in the print edition of The Straits Times on June 23, 2020, with the headline Oil and gas woes beset Malaysia's economic revival. Subscribe