GOVT URGES PRIVATE SECTOR NOT TO LAY OFF WORKERS

KUALA LUMPUR, Jan 8 (Bernama) -- The government has urged the private sector
not to lay off workers eventhough the economic situation is expected to get more
difficult this year.

In making this call, Second Finance Minister Nor Mohamed Yakcop also urged
banks to continue to give out loans and do away with very tight conditions.

This would be important in the efforts to bring back confidence and further
drive the country's economy despite a deteriorating world economy, he said when
interviewed during the Dialog@1 programme on national broadcasting station, RTM1
Wednesday.

He said the main priority of the government this year would be to ensure
that there were no lay offs.

"We want to ensure that all Malaysian citizens capable of work are working,"
he said.

The minister also explained that the impact from the RM7 billion (US$2
billion) financial stimulus package launched on November 4 last year would be
felt around the first quarter of this year.

He said the RM7 billion allocation has already been distributed to all the
ministries to be used in the projects that could drive the country's economy.

The government is also confident that the country will not be experiencing a
technical recession this year, he said.

"It has to be admitted that in 2009 we will be facing severe challenges
resulting from the failure in the western financial system but we are confident
that with the economic stimulus programmes that have been undertaken, we would
be able to drive the economy," he said.

Nor Mohamed said the country's economic growth was expected to stay positive
during the period from January to June this year based on the equity of the
financial system which exceeds 13 per cent, total liquidity which is in
billions of ringgit and the low non performing loan (NPL) rate which is at about
2.5 per cent.

"Although the world economy remains challenging, we are always prepared and
our financial system remains strong compared with the western countries," he
said.

Nor Mohamed also said that amid the signs of further decline in economy this
year there could be a second financial stimulus package if the situation called
for it.
-- BERNAMA