Azlan Othman
The national revenue has benefitted from the rise in the global oil price to over USD100 per barrel, but the effect ultimately depends on our production, said Minister at the Prime Minister’s Office and Minister of Finance and Economy II Dato Seri Setia Dr Awang Haji Mohd Amin Liew bin Abdullah at the daily press conference yesterday.
He said although we are facing restrictions due to the COVID-19 pandemic, we should ensure that the production is not affected. “We had a discussion with oil and gas companies to ensure that production is not affected by adhering to the standard operating procedures (SOPs). We are unsure as to how long the current high oil prices will last. But we hope that the longer the hike, the better for the nation,” the minister said.
Dato Seri Setia Dr Awang Haji Mohd Amin Liew further explained, “But high oil prices also affect production, as it contributes to input costs in goods production and imports.
“This is especially so when some goods are in short supply due to the global geo-political situation, resulting in the increase in price of foods, aggravated further by the increase in global oil price.
“As we import most of our goods, it can lead to inflation. So we should ensure unimpeded essential goods supply and food security for the nation,” he said.
“Inflation will become an issue not only in this region but also worldwide and the government is considering on how to overcome and benefit from the situation for the well-being of the nation.“
Oil prices jumped higher on Monday after Russia-Ukraine talks appeared to yield no progress, and markets continued to fret over tight supply – sparking a call by the International Energy Agency to reduce oil demand. Crude futures were up more than three per cent on Monday morning during Asia trading – international benchmark Brent crude was at USD111.46.
