MALAYSIA ABLE TO SURVIVE WORST OF GLOBAL ECONOMIC CRISIS, SAYS MSWG

KUALA LUMPUR, Dec 31 (Bernama) --- Malaysia, supported by a well-diversified
economy and regulatory framework, will be able to survive the worst of global
economic crisis which is expected to hit the country next year, according to the
Minority Shareholder Watchdog Group (MSWG).

"As far as we are concerned, our regulatory framework is better than what we
had in 1997 and our economy is more diversified," said MSWG chief executive
officer Abdul Wahab Jaafar Sidek.

However, he said the country is still expected to be affected during the
period.

According to Abdul Wahab, Malaysia will be most affected six months after
conditions in the world's largest economy, the United States, are expected to
worsen in June 2009.

"The worst will come six months later after June and we will recover after
that," he said at a media briefing here today.

Abdul Wahab said during the period concerned, about 1,000 public-listed
companies in the country are expected to be affected.

"There will be four categories of companies, with the first category
comprising companies that are still able to increase profit and the second with
companies that will just break even," he said.

"Then the third category will be companies suffering losses but still able
to survive and finally companies that will go bust," he added.

Abdul Wahab said during the difficult times, the RM7 billion stimulus
package announced recently would be better used to tackle the economic
fundamentals.

"It's better to address the issues on the ground. Create jobs rather than
invest in so-called undervalued companies. We have seen that in the last
recession when money was used to bail out certain companies. We hope this is not
repeated," he added.
-- BERNAMA