Oil price may hit Malaysia growth
Growth in Malaysia, the third-largest economy in Southeast Asia, may decline this year as higher crude prices crimp consumption, according to the country's prime minister.
Prices at about US$70 a barrel are 'of great concern at the moment,' Abdullah Ahmad Badawi said at the weekend in the Red Sea resort of Sharm el-Sheikh, where about 1,200 mainly Arab political and business leaders are gathering for the annual Middle East meeting of the World Economic Forum.
Mr Badawi said that Malaysia might manage 5 per cent growth this year.
That compares with 5.3 per cent last year and a central bank forecast of 6 per cent for this year on higher electronics exports and government spending.
Oil prices in New York have averaged almost US$66 this year, compared with US$56.70 last year, according to Bloomberg data.
Crude oil for June delivery on Friday fell 92 cents or 1.3 per cent to US$68.53 a barrel on the New York Mercantile Exchange, the lowest close since April 7. Futures rose to US$75.35 on April 21, a record since trading began in 1983.
On oil prices, Mr Badawi said: 'We are stepping up our mechanisms to deal with it to make sure that the negative impact of that can be reduced.'
