ID :
49960
Tue, 03/10/2009 - 21:41
Auther :
Shortlink :
https://oananews.org//node/49960
The shortlink copeid
MALAYSIA MUST BE INNOVATIVE IN HANDLING CRISIS
KUALA LUMPUR, March 10 (Bernama) -- Malaysia must be innovative to deal with the economic slowdown and not depend on orthodox economic recovery policies, Deputy Prime Minister Najib Razak said Tuesday.
"We must draw upon our past experience to overcome the crisis," he said in
apparent reference to the capital controls imposed in late 1998 in efforts to
haul Malaysia out of the crippling 1997/1998 Asian financial crisis.
During the crisis a decade ago, Malaysia imposed controls such as
prohibiting international trading of the ringgit and pegging the local unit at
RM3.80 to the US dollar, much to the chagrin of international financial circles.
Najib, who is also Finance Minister, said the second stimulus package worth
RM60 billion (US$16 billion) was more comprehensive and will "prevent our
economy from slipping into deep recession."
In painting a bleak but realistic picture of the global economy and its
effects domestically, he said Malaysia's economy is projected to grow between
negative one percent and one percent this year.
Najib cited how neighbouring Singapore is expected to fare badly with its
economy, contracting by 4.9 percent or even worse, by a negative 10 percent.
As the global economic environment this year is expected to be more
difficult, he said even the United States, the world's largest economy and
trading nation, is expected to see a contraction of 1.6 percent.
The United Kingdom economy is forecast to contract by 2.8 percent, Japan
(2.6 percent), South Korea (two percent) and Taiwan (four percent), he said.
Najib said it was highly likely that the global economy would get worse
before getting better as even the International Monetary Fund has revised
downwards its world economic growth forecast to 0.5 percent from 2.2 percent
this year.
Given its highly open economy, Malaysia will be impacted by several factors
including its exports which had already declined 27.8 percent in January this
year; its commodity exports, in particular crude oil, gas and palm oil which had
seen sharp decline in prices; decline in foreign direct investment inflow which
is expected to be halved to RM26 billion (US$7.O billion) from RM51 billion
(US$13.78 billion) last year; and the poor performance of Bursa Malaysia
(Malaysian Stock Exchange) following the global meltdown in equity markets.
Malaysia has faced several crises and has successfully overcome every single
one with its economy emerging ever stronger, Najib said.
With the undivided support of the rakyat (the people), including the
opposition, he expressed confidence in overcoming the increasingly difficult
times together.
With increasing calls by the rakyat for the government and the opposition to
set aside political differences and focus on the economy, Najib urged every
Malaysian to work together and strive harder to build a better Malaysia on the
basis of a strong and sustainable growth path.
-- BERNAMA
"We must draw upon our past experience to overcome the crisis," he said in
apparent reference to the capital controls imposed in late 1998 in efforts to
haul Malaysia out of the crippling 1997/1998 Asian financial crisis.
During the crisis a decade ago, Malaysia imposed controls such as
prohibiting international trading of the ringgit and pegging the local unit at
RM3.80 to the US dollar, much to the chagrin of international financial circles.
Najib, who is also Finance Minister, said the second stimulus package worth
RM60 billion (US$16 billion) was more comprehensive and will "prevent our
economy from slipping into deep recession."
In painting a bleak but realistic picture of the global economy and its
effects domestically, he said Malaysia's economy is projected to grow between
negative one percent and one percent this year.
Najib cited how neighbouring Singapore is expected to fare badly with its
economy, contracting by 4.9 percent or even worse, by a negative 10 percent.
As the global economic environment this year is expected to be more
difficult, he said even the United States, the world's largest economy and
trading nation, is expected to see a contraction of 1.6 percent.
The United Kingdom economy is forecast to contract by 2.8 percent, Japan
(2.6 percent), South Korea (two percent) and Taiwan (four percent), he said.
Najib said it was highly likely that the global economy would get worse
before getting better as even the International Monetary Fund has revised
downwards its world economic growth forecast to 0.5 percent from 2.2 percent
this year.
Given its highly open economy, Malaysia will be impacted by several factors
including its exports which had already declined 27.8 percent in January this
year; its commodity exports, in particular crude oil, gas and palm oil which had
seen sharp decline in prices; decline in foreign direct investment inflow which
is expected to be halved to RM26 billion (US$7.O billion) from RM51 billion
(US$13.78 billion) last year; and the poor performance of Bursa Malaysia
(Malaysian Stock Exchange) following the global meltdown in equity markets.
Malaysia has faced several crises and has successfully overcome every single
one with its economy emerging ever stronger, Najib said.
With the undivided support of the rakyat (the people), including the
opposition, he expressed confidence in overcoming the increasingly difficult
times together.
With increasing calls by the rakyat for the government and the opposition to
set aside political differences and focus on the economy, Najib urged every
Malaysian to work together and strive harder to build a better Malaysia on the
basis of a strong and sustainable growth path.
-- BERNAMA
