Saturday, October 23

Oil price to stay at US$62 per barrel in 2018

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KUALA LUMPUR: Crude oil price, currently trading at US$61.48 (US$1=RM4.18) per barrel, is projected to stay at US$62 per barrel in 2018, said business consultancy Axcelasia Inc executive chairman Dr Veerinderjeet Singh.

He said the projection was in line with published economic reports, as the US$62 per barrel level would be good for Malaysia in terms of revenue – petroleum income tax and royalties.

“As far as the ringgit is concerned, if our economy continues to grow, it will stabilise at the current level of RM4.20 against the greenback, (and) it would either maintain or improve to RM4.10 in 2018,” he told reporters at the 2018 Annual Budget Seminar yesterday.

Veerinderjeet, who is also Axcelasia Taxand Sdn Bhd Chairman, said the ringgit performance had not seen a dramatic ups and downs, and would remain stable, depending on many factors, including Malaysian trade and exports.

“While the Malaysia’s Budget 2018 gave a projection of US$55 per barrel, (nevertheless, the US$62 per barrel) would bring additional revenue,” he said.

On taxation industry updates, he said Malaysia is in the midst of adjusting its current tax regime to be in line with the Organisation for Economic Co-operation and Development’s (OECD) policies.

Among the policies endorsed include lower corporate tax rate, which would lead to tax incentive reduction, which will be good for the economy in the long run, he added.

The speakers at the seminar were made up of tax experts, economists and government officials who delved into major insights of Budget 2018.— Bernama