Govt lowers GDP forecast to -4% to -5% for 2009

(The Star) – The Government has revised Malaysia’s GDP growth forecast this year to between -4% and -5%, down from – 1% to 1% earlier, said Prime Minister Datuk Seri Najib Tun Razak, who is also the Finance Minister.

In his written reply to Dtuk Seri Ong Ka Chuan (BN -Tg Malim), Lim Lip Eng (DAP – Segambut), Salleh Kalbi (BN – Silam), Dr Rosli Che Mat (PAS – Hulu Langat) questions on the current economic situation and allocation from the stimulus packages which have been spent and how the implementation of projects could help ease the global economic downturn on the country.

The Government foresees more economic challenges.

The development was based on the domestic economic indicator which is showing a sliding trend on export value, Industrial Manufacturing Index and investment expenditure, he said.

Meanwhile, under the Second Stimulus package, 8,981 projects amounting to RM4.3bil have been offered.

From the amount, 545 projects totalling RM1.3bil have been completed.

”The package is a comprehensive package which also considers the effort to lessen the people’s burden during the economic slowdown.

The government’s initiative toward restoring the country’s economy has given confidence to investors, especially in the equity market, he added.

The government is also confident that through the strategy and measures that have been drafted in both of the comprehensive and thorough economic packages, the effects of the economic slowdown could be minimised.

The implementation of both the packages would also be monitored closely to ensure value for money, said Najib.