M'SIA NOT IN FINANCIAL CRISIS, SAYS M'SIAN DPM

KUALA LUMPUR, Oct 20 (Bernama) -- Malaysia is not in a financial crisis and
should not be talked into one, Deputy Prime Minister Najib Tun Razak
stressed Monday.

However, the country's real economy would inevitably be negatively
impacted by the current financial challenges, said Najib, who is also Finance
Minister.

"While we are confident of the resilience of our financial sector, we are
mindful that the financial turmoil in markets elsewhere will bear consequences
on the real economies there as well as globally," he said after opening Khazanah
Megatrends Forum.

Najib said from the government's perspective, managing the impact on the
real economy was the top priority while it continued to ensure the integrity of
the country's financial system.

He said the global economic slowdown would have an impact on demand
for
discretionary consumption which formed a portion of Malaysia's exports.

"Quite clearly, the tradeable sectors of the economy will be negatively
affected," he said.

Najib said slower growth, which is beginning to be visible, would result in
a slower demand for commodities as evidenced in the softening of commodity
prices including crude oil prices.

"The decline in palm oil and rubber prices will affect both the bottom line
of our plantation companies and smallholders' income," he said.

Therefore, he said, the drivers for sustained economic growth would have to
come from domestic private investments and continued robust domestic
consumptions.