In a special address, Najib said that the goverment remained confident that the country's gross domestic product (GDP) would grow by between 4.5 per cent and 5.5 percent in 2015.
He also said the current account will remain in surplus this year while the ringgit exchange rates will over time adjust to reflect Malaysia' strong fundamentals.
However, the Prime Minister said that the falling oil price necessitated a review of fiscal assumptions underpinning the 2015 Budget, with the revised forecast predicting a revenue shortfall of RM13.8 billion.
"Without any fiscal measures, this would lead to a deficit increase to 3.9 per cent of GDP" he said. (More here).
Hence, he said the development expenditure of RM48.5 billion provided in the 2015 Budget would be maintained and spent.
However, the operating expenditure is expected to be reduced by RM5.5 billion by reprioritising expenditure, he said. (More here).