GOVT TO TAKE PROACTIVE MEASURES TO ENSURE ECONOMY CONTINUE TO PROSPER

KUALA LUMPUR, Dec 4 (Bernama) -- Prime Minister Abdullah Ahmad Badawi says the
government will closely monitor developments in the global economy and take
pre-emptive measures to ensure Malaysia's economy continues to grow and be
managed on an even keel.

"We face challenging times ahead. A number of countries are heading into
recession and Malaysia, while not likely to face recession, will certainly not
be spared from the growing economic turmoil," he said.

On its part, the government has announced a RM7 billion (US$2 billion)
stimulus package, a far-sighted plan to liberalise the services sector and has
relaxed guidelines for foreign investments, he said.

"We will continue to monitor the situation and take active steps to ensure
Malaysia's economy continues to grow and be managed on an even keel," he said
when opening the Love Malaysia Expo 2008 here Thursday.

Going forward, he said, it is now more important than ever that greater
emphasis is placed on the development of small and medium enterprises (SMEs) as
an important driver of the economy.

As of 2007, 99 percent of businesses established in Malaysia comprised
SMEs, contributing 32 percent of Malaysia's Gross Domestic Product (GDP), and
and making up of 56 percent of total employment for 19 percent of total exports.

"Therefore, it is exceedingly clear that as we attempt to ride out the
storm
ahead of us, we must stand committed towards the development of a robust and
competitive SME sector," said Abdullah.

In this regard, the private sector has assumed a great role to promote
SMEs,
he said, adding that banks and development financial institutions had approved
RM63.2 billion (US$17.36 billion) in funding to over 132,000 SME accounts in
2007.

The amounts exceeded the RM51 billion (US$14 billion) target to 110,000 SME
accounts projected for last year, he said.

Abdullah said if the SMEs continued to invest in productivity growth and
brand development and always kept their eyes on the future, they would emerge
stronger and better prepared to seize success in the global arena.

"It will only be a matter of time before Malaysian businesses become
household names worldwide," he added. (US$1=RM3.60)
-- BERNAMA