Malaysia on Thursday cut its 2016 growth forecast and slashed spending plans as the economy reels from the slump in oil prices, AP reported. In a speech, Prime Minister Najib Razak said the government had based the 2016 budget on oil prices averaging $48 a barrel, but that estimate has been lowered to $30-$35 a barrel. State oil company Petronas contributes about a third of all revenue collected by the Malaysian government, which loses around 300 million ringgit ($70 million) for every $1 drop in oil prices. Najib said economic growth will be between 4 and 4.5 percent this year, down from an earlier estimate of 4 to 5 percent.
