Malaysia not in recession, says Najib

There is no recession, not even technical recession, says Datuk Seri Najib Razak. – AFP pic, January 28, 2016.

Prime Minister Datuk Seri Najib Razak began his announcement of a recalibrated budget today by stressing that Malaysia was not in a recession.

"We are not in a recession nor are we in a technical recession.

"This is the situation we must understand," Najib said before announcing measures under an adjusted budget that he said would help Malaysians cope with economic challenges out of the government's control.

He said the budget tabled in October last year, worth RM267 billion, was based on oil price at US$48 per barrel.

The price per barrel now for Brent crude is US$31 per barrel, a drop of 35%.

"All these developments have made the global economic situation uncertain. In view of this reality, as a responsible government, we have to take proactive action to announce measures to recalibrate the budget."

He said adjustments to the budget would ensure Malaysia's economy remained strong as it already had sound fundamentals.

He also said the performance of the ringgit, which slipped to as low as RM4.40 to the US dollar despite slight improvements, was below its true value and did not reflect Malaysia's economic fundamentals.

Najib said the measures he was going to announce came from the views and suggestions Putrajaya gathered from meetings with stakeholders, such as government-linked companies, economists and industry captains.

- TMI