M'SIA NOT IN ECONOMIC CRISIS, SAYS NOR MOHAMED

KEPALA BATAS (Malaysia), Aug 30 (Bernama) -- Second Finance Minister Nor Mohamed Yakcop Saturday dismissed claims by several parties that Malaysia was in an economic crisis as the Budget 2009 was being tabled on Friday.

The country's economy remains strong with a Gross Domestic Product growth
of
5.7 percent expected for this year and 5.4 percent next year.

"Our economic fundamentals are strong. We are lucky because in the last
seven years, the government has been managing the economy with
discipline.

"The deficit rate of 5.5 percent in 2000 was reduced to 3.2 percent in
2007," he told reporters after launching an education programme here
Saturday.

He said the reduction in deficit was brought about by the government's
commitment to manage its finances well and at the same time enabling it to
increase its expenditure for the people in order to reduce their financial
burdens.

Nor Mohamed said the government remained committed to bringing down the
deficit level from 4.8 percent this year to 3.6 percent next year.

Although it is facing many global challenges, Malaysia has the capacity to
drive its economy to a higher level through its various economic
sectors.

Among them is Islamic finance, where the country is in a leading position
in
the world while in the business processing operation it is in third place,
behind India and China, he said, brushing aside claims that the Budget 2009
tabled by Prime Minister Abdullah Ahmad Badawi Friday was
politically motivated.

Malaysia has a vast opportunity to expand its economic sources through the
oil and gas sector, services as well as manufacturing, he added.

-- BERNAMA