KUALA LUMPUR, Dec 4 ― The federal government must be honest in explaining the country's current financial standing amid fears of a potential economic crisis brought about by plummeting global oil prices, DAP lawmaker Liew Chin Tong said today.

The Kluang MP said he was shocked by the “lackadaisical attitude” of deputy Finance Minister Datuk Chua Tee Yong in shrugging off concerns that the continued decline in world oil prices ― which was priced at below US$71 (RM244.24) as of December 3 according to oil pricing service Platts ― would lead to a net decline in revenue for Putrajaya.

Liew argued that Malaysia's economy would be heavily affected by the slide in the value of crude oil as 30 per cent of the federal government's revenue is petroleum-related.

“For every US$1 fall in oil price, it is estimated that the Malaysian government suffers at least RM650 million loss in revenue.

“The government budgeted oil prices at US$110 per barrel in 2014 and US$105 per barrel in 2015,” he said in a statement.

Yesterday, Chua said the country's oil revenue target remained on track despite the drop in global oil prices, stressing that Malaysia's petroleum revenue is based on Tapis crude ― which it exports ― and not on the Brent standard that is typically used to determine pump prices.

The deputy minister claimed that the price of Tapis crude, considered the most expensive oil blend, averaged at around US$100 (RM344) or higher over the year up till November.

Chua added that the decline in global oil prices has allowed the federal government to ease off its fuel subsidy scheme with the corresponding dip in pump prices, and potentially see a hike in exports following improved consumer sentiments.

Liew today slammed the deputy minister for being like an “ostrich burying its head in the sand”, stressing that Tapis and Brent had at one point hit the same price at US$71 (RM244.24) over the past four weeks.

He acknowledged that the Tapis blend would normally be priced some 5 per cent higher than the Brent standard, but the decline in oil prices affected both.

“The fact is, although Tapis is usually slightly higher than Brent, for most of the past two months it has hovered below US$100 per barrel. In fact, for most of the last two weeks, it was lower than US$80 (RM275.20),” Liew said.

The DAP national political education director said it was unlikely that consumer sentiments would improve unless pump prices are slashed substantially, noting that consumers will more likely experience higher living costs due to the 3 sen increase in diesel pump prices.

“I call on Chua and the government to be candid on the latest fiscal and economic scenarios arising from lower petrol prices and not to bury their heads in the sand,” Liew said.