Malaysia can absorb pressure from US$100 oil, analyst says

Economist Prof Madya Dr Aimi Zulhazmi Abdul Rashid of UniKL Business School says Malaysia still has room to absorb the pressure of world oil prices rising to around US$100 a barrel. He says savings from BUDI95 subsidy targeting are estimated at RM8 billion to RM10 billion a year, but these could be used up if oil prices stay high for six months. The 3.8 percent fiscal deficit target remains achievable but is more challenging if high oil prices coincide with increased aid spending.