Measures to strengthen economy to be announced Monday

Source The Star

KUALA LUMPUR: The Government will announce on Monday a new set of measures to strengthen the economy in light of the global economic crisis, Finance Minister Datuk Seri Najib Tun Razak said.

Speaking to reporters Tuesday in his Parliament office, Najib said the measures which will come in the form of a stabilisation plan is being worked on currently and was discussed by the National Economic Action Council on Monday.

“I want to assure the public that the Government is on top of the situation. Although it is serious, there is no need for us to panic,” he said.

Najib said Malaysia was not as bad as other countries but admitted that the global economic crisis would certainly impact negatively on the economy.

“As far as we are concerned, this year we should attain the 5% growth we expect. We are also not facing recession this year. Next year we will have to look at the figures again and some of the figures will be revised.”

Najib said however it did not necessitate the retabling of a new Budget as was suggested by Opposition Leader Datuk Seri Anwar Ibrahim.

“That proposal is not an appropriate one to tackle the crisis. Some of the figures in the Budget may have changed, but it is not necessary to retable the Budget.

“What is important is that government spending continues so that it creates domestic growth and consumption while all programmes to help the poor and low income groups are carried out as scheduled.”

Najib said the current Budget should be passed by Parliament as it contains positive measures to help the rakyat.

On whether the Government could still meet the 4.8% budget deficit considering the reduction of crude oil and palm oil prices, Najib said the figures would be revised at the appropriate time.

When asked whether interest rates would be lowered, Najib said it was not his policy to interfere in that and that he would leave it up to Bank Negara to decide.

“Depositors should not worry about their money in the bank as there is enough liquidity in the banking system,” he said when asked whether there was a need to guarantee bank deposits.