Tuesday, November 4, 2008

RM7b stimulus to bolster economy of Malaysia

It was the recent overlapping effects of the Japanese and Russian crises that have been a major cause of the recent worsening in the global economic situation. The current economy scenario calls for urgent and exceptional action. Countries afflicted by the financial crisis have been forced to take their own measures to protect their economy.

In response to the global financial crisis, the government of Malaysia has also taken an active and positive role to address the problem by pumping RM7 billion into the economy. The RM7bil come mainly from the reduction of fuel subsidies.

Najib Abdul Razak

Deputy Prime Minister and Finance Minister Datuk Seri Najib Abdul Razak tabled the RM7 billion stimulus package to reinforce the economy, strengthen national resilience and to maintain economic growth momentum to face the increasingly challenging global economic climate.

"This is to ensure Malaysia's economy continues to grow and the rakyat do not come under too much pressure.”

He said the Gross Domestic Product (GDP) would be revised downwards to 3.5 percent for 2009 from five percent this year.

Najib said the government will give workers the option to reduce their contribution to the Employees Provident Fund (EPF) by three percent for two years beginning next January.

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