IDEAS: Malaysia may lose RM31 bil per year if oil prices remain at US$30 per barrel
by Market Edge | 16th April 2020 | In The News
KUALA LUMPUR (April 16): The Institute for Democracy and Economic Affairs (IDEAS) said that Malaysia may lose RM30.9 billion in fiscal revenues per annum if oil prices remain low, which would further strain the nation’s finances.
It said this issue was discussed in a webinar organised by the Centre of Market Education (CME) and supported by IDEAS titled ‘Oil Economics in Times of Crisis and Energy Transition’ today, by CME board member Professor Renato Lima de Oliveira, who is also IDEAS senior fellow and assistant professor at the Asia Business School.
The event was moderated by CME director and IDEAS senior fellow Dr Carmelo Ferlito.
According to Prof Renato, a field-by-field study showed that if crude oil prices stay around the US$30 per barrel mark from today till 2030, the world can expect a decrease of US$170 billion in capital investments in new production capacity and US$616 billion in government revenues on average, per year, compared with a scenario of prices at US$60 per barrel
This article was originally published on The Edge Markets
Picture courtesy by The Edge Markets.