Malaysia’s stimulus may top RM15b

Malaysia’s second stimulus plan, due to be unveiled on March 10, may be more than double the size of the first package as the government strives to counter a deepening global slump, Trade Minister Muhyiddin Yassin said.

“It may be, I don’t know, more than RM10 to RM15 billion," Muhyiddin said in an interview aired today on CNBC. The money is available and needs to reach the targeted businesses, industries and people “as soon as possible,” he said.

The government is adding to a RM7b spending plan unveiled in November as it seeks to prevent the economy from following Asian exporters including Singapore and Taiwan into recession.

Malaysia’s economy probably grew at the slowest pace since 2001 last quarter, according to a Bloomberg News survey. The central bank, which will release the numbers today, has cut interest rates three times since late November, saying the risk of an economic contraction this year has risen.

“We have to review the growth figure that we have,” Muhyiddin said. He said on Feb. 23 that exports may fall as much as 4 percent this year as demand for the Southeast Asian nation’s electronics slumps. – Bloomberg