M'SIA WILL NOT SLIP INTO "TECHNICAL RECESSION" NEXT YEAR, SAYS DPM

KUALA LUMPUR, Nov 5 (Bernama) -- The Government is confident Malaysia will not slip into a "technical recession" next year as the RM7 billion (about US$2 billion) stimulus package is sufficient to support the projected 3.5 percent growth next year, Deputy Prime Minister Najib Razak said Wednesday.

A technical recession means two consecutive quarters of negative economic
growth.

Besides ensuring the 3.5 percent growth, the stimulus would maintain the
4.8
percent fiscal deficit, said Najib who is also Finance Minister.

"The additional RM7 billion stimulus is crucial as we don't want the
government to shoulder a very high fiscal deficit though we can afford to
increase allocations," he told reporters after being interviewed by national
broadcasting station, Radio Televisyen Malaysia (RTM) in "Rancangan Khas Pelan
Penstabilan Ekonomi" (Special Programme on the Economic Stabilisation
Plan).

Asked whether the government would provide additional stimulus package,
Najib said: "I've said this is not the last time, we don't need to wait for the
annual budget as we are facing an extraordinary situation."

Asked on the Opposition's suggestion to slash the budget by RM24 billion
(US$6.8 billion), he said: "They tabled a contraction budget, maybe they are
still preoccupied with the old ways of thinking like in the 1997 (financial
crisis) when the International Monetary Fund (IMF) prescription was
administered."

"Actually, we should not scale down the budget now. What is important now
is
the growth (economic) because in the absence of economic growth, the country
will head towards recession," he added.
-- BERNAMA