MALAYSIA will have to go back to the drawing board on the 12th Malaysia Plan (RMK12) following the collapse of the global oil price, said Economic Affairs Minister Mustapa Mohamed.

“The numbers crunched earlier are no longer relevant. We have to go back to the drawing board,” he said in a web interview with think-tank IDEAS today.

“When I came in last month, a lot of work had already been done on RMK12. Planning was done when the economy and forecast were favourable.

“But following the movement-control order (MCO) and Covid-19, there is now negative growth.”

Mustapa, however, did not elaborate on what the RMK12 revision would look like, except to say the current government would continue with the previous administration’s Shared Prosperity Vision.

“It will follow the Shared Prosperity Vision announced by the previous government.”

Under Budget 2020, the government estimated petroleum-related revenue to be around RM50.5 billion at the average world crude price at US$62 per barrel. 

Non-petroleum revenue was estimated to increase by 6.6% to RM194 billion, accounting for 12% of the gross domestic product.

The price of Brent crude today, however, is US$22.

Mustapa also said that the virus pandemic has caused changes to consumer behaviour.

“After this, there will be more virtual offices and that will dampen the property market, which is already in an overhang.”

He declined to comment on whether the Perikatan Nasional (PN) government will announce another stimulus package following the imposition of a fourth phase of the MCO.

“That’s not for me to comment. We will monitor the developments,” said the minister.

He was responding to IDEAS chief executive officer Ali Salman’s question on whether the government will announce another stimulus to help alleviate the economic concerns of Malaysians who cannot work during the MCO.

The existing stimulus package amounts to RM260 billion.

Prime Minister Muhyiddin Yassin announced yesterday a further two-week extension to the MCO, which will now run until May 12. – April 24, 2020.