Budget Deficit Target To Remain Intact

Economic Research	30 June 2017
Malaysia
Economic Update
Budget Deficit Target To Remain Intact The Government, in our view, is unlikely to make any revisions to its 2017 Budget for now, despite a sharp pull-back in oil prices of late. If assuming oil prices were to creep lower and average about USD40/bbl in the 2H, the average full year would still be slightly above USD46/bbl, which is marginally higher than MOF’s forecast of USD45/bbl for the Budget 2017 tabled in Oct 2016. In any case, even if there is a revision, we believe it would likely be done in the forthcoming 2018 Budget on 27 Oct rather than now. Economist:  Vincent Loo Yeong Hong  | +603 9280 2172 Economist:  Aris Nazman Maslan  | +603 9280 2184