MALAYSIA'S SECOND STIMULUS PACKAGE TO BE SIGNIFICANT

KUALA LUMPUR, Feb 17 (Bernama) -- The second stimulus package is expected to be significant in order to stimulate the Malaysian economy, United Nations' assistant secretary-general for economic development and social affairs, Dr Jomo Kwame Sundaram, said Monday.

According to him, the first stimulus package was quite modest at 1.1 percent
as compared to that of China at 18 percent.

Jomo, who is also a member of the United Nations Commission of Experts on
Reforms of the International Monetary and Financial System, said this at a
public talk on "The World Economic Crisis and Asia" organised the Strategic
Information and Research Development Centre here.

He also said that financial regulations should be strengthened to meet new
conditions and challenges, including better risk management and prevention.

"Financial regulations like prudent risk management, support investment and
technology policy are crucial for development," he added.

In view of reduced demand for imports, Jomo said developing countries like
Malaysia, which is an export-led nation, should focus more on the domestic
market and stimulate the domestic economy as it is the way forward.

Jomo said export-led growth in developing countries was not sustainable with
the import demand drop.

"The impact of of recession has affected the trade surplus of developing
countries and most investors are pulling out of emerging markets," he said.
-- BERNAMA