Second stimulus package necessary to boost economy
January 24, 2009
$552m in SME loans to offset downturn
January 23, 2009
Govt plans $2bn spending package
Economic Outlook 2009:
Domestic demand critical to growth
January 2, 2009
Malaysia central bank sees room to cut rates
December 23, 2008
Malaysia: Job losses seen rising in next 3 months
December 7, 2008
Malaysia: Fiscal boost to fend off recession
November 22, 2008
oil eases Malaysian inflation
November 18, 2008
slashes fuel costs by 7%
November 16, 2008
faces no recession, currency to rise – central bank
November 15, 2008
Coping with Global
Malaysia to scrap import duties
November 13, 2008
$870m highway plan shelved over funding woes
November 4, 2008
to announce new measures to boost economy
Malaysia expects higher budget deficit in 2009
Malaysia's budget deficit in 2009 will be higher than the 4.8 percent of gross domestic product planned after a second fiscal stimulus package is introduced, Reuters quoted the country's finance minister as saying.
The government has said it will implement a second package to boost the economy after 7 billion Malaysian ringgit ($1.95 billion)was reallocated to boost the economy, largely from savings due to reduced petrol subsidies.
"It (the fiscal deficit) all depends on the fiscal pump priming that we are going to do," Najib Razak, who is deputy prime minister and finance minister, said on Thursday, according to state news agency Bernama.
So far no details have emerged of the new spending package and Najib has set up a suggestions page on his blog (www.1malaysia.com.my).
Many economists were already forecasting that the budget deficit for this year would exceed the planned 4.8 percent of GDP.
Royal Bank of Scotland said last week that investors should go short of Malaysian debt due to the likelihood of a credit ratings downgrade amid a slowing economy and planned additional spending.
It saw the deficit at 5 percent of GDP this year.
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