Finance Ministry secretary-general Mohd Irwan Serigar Abdullah said although the government’s income would be reduced should oil prices plunge further, the extra revenue expected from the re-calibrated budget would complement the losses made.

Among the measures laid out in the revised budget which is predicted to help boost revenue include the expected increase of Chinese tourists following visa exemptions and the restructuring of cigarettes and liquor sales in tax-free islands.

“We are still safe if the oil price falls below USD30 per barrel, as we will have additional revenue coming from other sources.

“We will still be able to sustain the economy and delivery,” said Irwan in a forum held to explain the re-calibrated budget at the Putrajaya International Convention Centre today.

He added that the new budget would see Putrajaya saving up to RM9 billion, with RM5 billion coming from development spending and another RM4 billion from operating expenditure.

Prime Minister Najib Razak today announced the changes made to the budget, in line with the expectation that oil prices would remain between USD30 to USD35 per barrel.

When asked what the government would do should oil prices actually drop to USD20 per barrel, Irwan said if that happened, “the whole world would be in recession.”

“Every oil producing country will be in trouble.”