Putrajaya might tweak Budget 2015 in face of falling oil prices, flood aid

Prime Minister Datuk Seri Najib Razak says today Budget 2015 might be revised because of unexpected major events. – The Malaysian Insider pic by Kamal Ariffin, January 13, 2015.

Falling global oil prices and a weakening ringgit have forced Putrajaya to relook Budget 2015. The recent flood in the east coast states might also affect government spending after it said it would spend RM800 million for flood relief.

Prime Minister Datuk Seri Najib Razak said today the budget might be restructured in view of current developments, national news agency Bernama reported today.

"I will come out with a statement (on this) next week," he said after receiving flood relief assistance from China today.

Among the aid were 2,950 units of tents, 220 set generators, 400 water pumps with 1.1 kilowatt capacity, 45 water hoses and 60 water purification sets with 500litre/hour capacity.

On January 1, The Malaysian Insider reported that Putrajaya would focus on domestic investments and spending amid a gloomy economic outlook.

Treasury had ordered all government-linked companies and statutory bodies to hold off foreign purchases in response to falling global oil prices and a weakening ringgit.

"After taking into consideration the uncertain world economic outlook in 2015, the government on December 17 is of the opinion that domestic consumption must be increased to generate and support the country's economy," according to the Treasury circular.

"In relation to that, and to support the government's efforts to increase domestic consumption, government-owned and linked companies, statutory bodies and subsidiaries must give priority to domestic investments and immediately cease acquiring foreign assets to reduce the outflow of funds," said the circular dated December 26, 2014.

Present at today's event were Deputy Prime Minister Datuk Seri Muhyiddin Yassin, Defence Minister Datuk Seri Hishammuddin Hussein, Home Minister Datuk Seri Ahmad Zahid Hamidi and Chief Secretary-General to the government Tan Sri Dr Ali Hamsa.

- TMI