CIMB Securities: Rising oil prices have a moderate impact on Malaysia's economy, with fiscal trade-offs ahead

(1) CIMB Securities analyst Ivy Ng pointed out in a report that rising oil prices are expected to provide a moderate economic boost to Malaysia, but at the same time, there will be fiscal trade-offs to consider. (2) Regarding economic growth, she analyzed that for every $10 increase in Brent crude oil prices, Malaysia's real GDP could grow by approximately 0.06% to 0.10%, thanks to increased oil-related output and higher government spending. (3) In terms of fiscal impact, although rising oil prices are expected to increase oil-related revenues by about 3.5 billion ringgit, the resulting higher fuel subsidy expenditures may more than offset these gains, ultimately leading to a net fiscal deterioration of about 1.6 billion ringgit.