Malaysia Stresses No Need to Panic While Cutting Forecast

Malaysia’s policy makers sought to reassure investors the economy can withstand an oil-price slump that forced the crude-producing nation to trim its growth forecast and change its budget deficit target. The ringgit fell.

The Southeast Asian nation’s economy isn’t in crisis, Prime Minister Najib Razak said in a speech in the administrative capital of Putrajaya today. Najib, also finance minister, said the 2015 budget gap will be 3.2 percent of gross domestic product, bigger than an October target of 3 percent, and growth will be 4.5 percent to 5.5 percent from an earlier projection of as much as 6 percent.