MALAYSIA NOT IN RECESSION, SAYS NOR MOHAMED

KUALA LUMPUR, March 3 (Bernama) -- Malaysia is facing a difficult time due
to the global economic downturn but it is still not in recession yet, Second
Finance Minister Nor Mohamed Yakcop said.

"We are not in recession. Recession is defined as two consecutive quarters
of negative growth in real gross domestic product (GDP) but we have not even
(recorded single negative growth yet)," he said when asked to comment on the
economic situation in the country.

"But certainly we are facing a challenging time," he told reporters after
winding up the debate on the motion of the King's address at the Parliament,
here Monday.

The country recorded a GDP growth of only 0.1 percent in the fourth
quarter of 2008 compared with a growth of 4.7 percent in the third quarter.

For the year, GDP growth moderated to 4.6 percent from 6.3 percent in 2007.

Nor Mohamed said the global economic downturn will have some impact on the
economic growth of the country.

"The economic slowdown in other countries like the United States, Europe,
Singapore where many companies have gone bankrupt and many workers have lost
their jobs has become a challenge for a country like us which is small and
dependent on trade," he said.

He said the government will take proactive measures to restore the economy
in the country and ensure that the people, especially the unemployed get better
treatment through the strategy that will be presented under the country's
upcoming mini budget.

Finance Minister Najib Razak will table the mini budget at the Parliament on
March 10.

Nor Mohamed also said that among the major items that will be discussed in
the mini budget will be on ways to boost the level of confidence among the
public, especially investors.

"We believe that we can retain confidence level in the economy through a
strategy that we will take, and via working very closely with the private
sector."

Meanwhile in his winding-up speech, Nor Mohamed said the second economic
stimulus package was not expected to have a significant impact on inflation.

In fact, the country's inflation will continue to subside this year,
supported by moderating commodity prices and the price reduction campaign
undertaken by several hypermarkets and supermarkets, he said.

In January, the Consumer Price Index was at a lower 3.9 percent compared
with 4.4 percent in December 2008.

Todate, a total of RM5 billion (US$1.3 billion) out of the RM7 billion (US$2
billion)allocated under the first economic package has already been distributed
to more than 20 ministries and agencies involved and they are in the
implementation stages.

A total of 8,474 projects worth RM567.9 million (US$1.5 million) have been
carried out.
-- BERNAMA