KUALA LUMPUR – The current level of oil price is favourable to the country’s economy as it brings down the costs to businesses and consumers as well as less inflationary, Bank Negara Governor Tan Sri Dr Zeti Akhtar Aziz said.
She said consumers would have more funds for discretionary expenditure and increase consumption demand on other things that spur growth.
“Therefore, we and the region are able to remain on a sustainable growth path,” she said in a special talk on Asean Economic Community and Globalisation organised by Asean Business Club, here today.
However, Zeti said if the oil price dropped to a certain threshold level, government revenue and development expenditure were going to be affected.
She said investment in the petroleum industry would be cut back and when the price increased, then the supply would be contained because this investment did not take place.
“At the central bank position, we don’t like to see extreme position in this kind of price movement,” she said. – BERNAMA