The negative effects of plummeting oil commodity prices has had a severe impact on Malaysias growth prospects and government revenues, the Wall Street Journal reports. The heavy reliance on the export of oil, palm oil and rubber for the nations revenue means that the decline in global prices for these commodities will hit Malaysia the hardest. In contrast, WSJ said that other Asian economies, which are commodity importers, are set to benefit from the drop in price. Calling Malaysia Asia’s largest oil-and-gas exporter, the US business daily said the country benefited when the price of crude oil remained over US$100 a barrel for most of last year. Hence, the sharp decline in the oil price to US$80, and the expected further drop in price, has resulted in foreign investors withdrawing around US$2.5 billion from the country last month, WSJ quoted analysts as saying.
Posted on: Wed, 19 Nov 2014 03:33:31 +0000
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