No need for further budget recalibration at the moment, says Najib

There is no need for further recalibration of the 2016 Budget at the moment as crude oil prices are likely to stabilise in the region of US$30-US$40 per barrel, said Datuk Seri Najib Razak.

The prime minister said the government may consider recalibrating the budget if crude oil prices dip below US$30 a barrel.

“It looks like oil prices are likely to stabilise at between UD$30 to US$40 for a while,” he told Malaysian journalists here on Wednesday (Thursday in Malaysia).

The 2016 Budget was prepared when the oil prices were at US$48 per barrel, but the government recalibrated the budget last month when oil prices hit US$32 a barrel.

The January budget recalibration was done to ensure that the people’s welfare and the country’s economic growth remain on a sound footing despite the strong global economic headwinds following the decline in global commodity prices including crude oil.

The recalibration included shelving non-priority development projects that resulted in savings of up to RM9 billion.

READ: 5 things Malaysians need to know about the revised 2016 Budget

READ: Abide by recalibrated 2016 budget or get allocation cut next year, ministries told

Najib said he might go to London in May to meet fund managers and investors in a move to further engage with capital market players.

During his week-long working visit to the United States which ended on Wednesday (Thursday in Malaysia), Najib met fund managers who manage total funds of US$7 trillion as well as investors in this city on the last day of his working visit.