MALAYSIA'S STIMULUS PACKAGES SHOWING POSITIVE IMPACT ON ECONOMY

KUALA LUMPUR, Sept 21 (Bernama) -- Malaysia's two stimulus packages
are on track and beginning to have a positive impact on the economy, said Prime
Minister Najib Tun Razak.

The economic packages totalling RM67 billion (US$1=RM3.5), unveiled in
November 2008 and March this year, have created jobs and income for small
contractors, even for those in remote areas, Najib said in a statement Monday.

The construction sector grew 2.8 per cent in the second quarter, higher than
the 1.1 per cent registered in the first quarter, he said in delivering an
update on the results of the stimulus boost.


Najib also directed all ministeries and agencies to implement and complete
projects identified under the first RM6 billion package this year.

"To date, a total of 83,939 projects have been awarded, of which 53,076
projects valued at RM6.07 billion under the first stimulus package and the
remainder under the second package which is designed to cover a period of two
years," he said.

"This means that in 10 months, since the unveiling of the first package, 90
per cent of projects identified have been awarded and are in various stages of
implementation," he added.

Construction was one of the biggest beneficiaries among several sectors that
were given fund injections because of their strong impact on economic growth.

Najib said RM7.92 billion had been paid out to contractors for the
completion of 41,176 projects under the first and second stimulus packages that
were launched to counter the global economic meltdown triggered by the
international financial crisis which hit export economies badly.

The finished projects included low-cost houses, infrastructure, schools,
police stations and army quarters.

Najib said in keeping with the government's "people first " strategy, a
total of 1,126 housing projects were built for the benefit of 5,630 households
throughout the country.

The Prime Minister personally monitors closely every aspect of the stimulus
packages on a weekly basis.

"This hands-on approach is to ensure that the targets set out under the two
stimulus packages are achieved," he said.

The government has also allocated RM1 billion for human capital development
to maintain Malaysia's competitiveness and to enhance efficiency of the labour
force, he added.

Implementation of the stimulus packages is supervised by several agencies,
key of which is the Project Management Unit (PMU) whose chief operating officer
Mohamad Othman Zainal Azim reports directly to the Prime Minister.

A technical committee chaired by the Treasury secretary-general also reports
to a steering committee chaired by Najib.

Amid the global turmoil, the government identified projects designed for
high impact and high multiplier effect to reinforce the economy and strengthen
national resilience.

Procedures were also streamlined to ensure speedy implementation.

The public can keep abreast with the government's progress on the website
www.rangsangekonomy.treasury.gov.my and make enquiries.

-- BERNAMA