GOVT DOESN'T NEED ALTERNATIVE PLANS TO DEAL WITH ECONOMIC UNCERTAINTIES

KUALA LUMPUR, Oct 15 (Bernama) -- The government does not need alternative
plans to mitigate the economic uncertainties but will instead utilise plans in
hand to spur economic growth and woo investments, the Lower House of Parliament
heard today.

Minister in the Prime Minister's Department Amirsham A. Aziz said the
government would pursue the expansionary budget policy to stimulate economic
growth and not to shrink the economy.

"Malaysia is not affected by the financial meltdown (plaguing the United
States and Europe). Our financial system is still strong and credit transactions
are going on smoothly (in the country)," he said when replying to a
supplementary question from Prof Dr P. Ramasamy during question time.

Earlier, replying to Raime Unggi, Amirsham said Budget 2009 could generate
vigorous domestic demand, attract investments and bolster industrial activities
that can yield higher income for the people.

Eventhough Budget 2009 was an expansionary budget, it was still under
control with a low national debt rate at 32.6 percent to the Gross Domestic
Product this year and low foreign debt service ratio at 3.8 percent.

"The country's banking system is still strong, credit facilities are still
available, liquidity is high and low non-performing loans below 2.5 percent.

"Bank Negara and the Finance Ministry are closely monitoring the financial
sector and instituting proactive measures to pre-empt external developments,
including global financial crisis, from impacting the country's financial
system," said the former president and chief executive officer of Maybank.

Nonetheless, Amirsham did not deny that Malaysia, being an open economy,
could not avert the direct and indirect impacts of the economic recession and
global financial crisis.

Deputy Prime Minister and Finance Minister Najib Razak said Tuesday fresh
pre-emptive measures in the form of "stabilisation plan" would be decided and
announced on Monday.
-- BERNAMA