M'SIA TO FOCUS ON STIMULATING ECONOMIC GROWTH, SAYS PM

PUTRAJAYA, Sept 23 (Bernama) -- The government will be focussing on
stimulating and accelarating economic growth taking into account the deepening
financial crisis originating from the United States, Prime Minister, Abdullah
Ahmad Badawi said Tuesday.

He said that with inflation having peaked and beginning to abate, the focus
now should be to stimulate and accelerate economic growth.

"In light of the challenges ahead, we will continue to draw up a
comprehensive package of measures to address the current economic issues as well
as for the medium and long term," he said in his opening remarks at the Economic
Council Meeting here.

He said that several measures in Budget 2009 to strengthen Malaysia's
economic resilience and competitiveness as well as to lighten the burden of
inflation on the lower and medium gropup has been announced.

He said that the working groups of the Economic Council headed by experts
were studying various other measures to promote economic growth.

He emphasised that Malaysia faces the task of sustaining its growth
momentum
and cushioning the impact of a possible economic slowdown.

"Thanks to Bank Negara Malaysia's liberalisation measures for the banking
and financial sector as set out in the financial sector masterplan in 2001,
Malaysia's banking and financial sector continues to remain strong and
vigilant," he said.

"Its exposure to the distressed assets and failing financial institutions
im
the U.S. is very limited," he said.

However, the greater concern is the weaker export demand and investment
flows into Malaysia as a result of the economic slowdown in the U.S. and Europe
and also with Japan weighing down of the regional economy.