KUALA LUMPUR (Jan 23): OCBC Bank has revised its forecast for Malaysia's 2015 GDP growth to 4.8% on-year from 5.1% on recent unexpected macroeconomic changes.

Wellian Wiranto, economist at OCBC Bank's Treasury Research & Strategy division, said that the revision was to reflect cutbacks in business investment activities, including those within the oil and gas (O&G) sector.

"In the near term, lingering uncertainties about oil prices and the impact on Malaysia's growth may continue to weigh on sentiment," Wiranto told reporters at the bank's 2015 economic outlook presentation today.

He said supposing oil prices moved up in the second half of 2015, Bank Negara Malaysia would likely raise another 25 basis point to the current 3.25% overnight policy rate (OPR).

"Of course, they will still have to based on the oil price moving forward, coupled with the aftermath of the upcoming GST (Goods and Services Tax)," Wiranto explained.

On oil price, he said crude oil had lost the ground to be priced at over three digit by year-end, and would probably hover at UD$55 per barrel.

"It (crude oil price) could go up, especially as US shale oil producer's hedging contracts are ending by end of this year, but currently we are forecasting at about US$55 per barrel for 2015," Wiranto said.