As Asia’s largest net energy exporter, only Malaysia will benefit significantly from higher energy prices. With crude oil, natural gas and palm oil making up almost 30% of total exports, the country is experiencing a significant positive terms-of-trade shock, says Barclays Capital.
It says US$120 oil would add 3.1 percentage points to Malaysia’s current account balance as a percentage of GDP, and 0.9 percentage points to Indonesia’s.
