KUALA LUMPUR, Jan 12 – Falling crude oil prices is not disastrous to the country but its impact on the economy depends on the reaction from the government and industry players.
Institute of Strategic and International Studies Chairman and Chief Executive Officer Tan Sri Rastam Isa said although crude oil was a large component of the country’s exports, the base was well diversified to cushion the impact. “In fact, if the downtrend continues, other countries with an interest in the oil and gas sector would surely react to stabilise oil prices.
“There will surely be ways for us to overcome problems that arise if oil prices keep plunging,” he said when commenting on today’s Brent crude oil price which dipped to US$49.35 per barrel, its lowest since April 2009 on the sidelines of the one-day international forum on opportunities in Colombia. “Other countries, besides Malaysia, are monitoring the situation closely to see if oil prices stabilise,” he added.