Malaysia cuts growth forecast, announces spending plan

Malaysia on Tuesday slashed its 2009 growth forecast and announced a two billion dollar spending programme in a bid to boost the economy.
The government cut its 2009 growth forecast from 5.4 percent to 3.5 percent, warning that Malaysia would not be immune from the effects of the global financial crisis.
"Although Malaysia is not as yet facing a financial crisis and has sound financial fundamentals, we are aware that Malaysia will not be exempt or be protected from global risks," said deputy premier Najib Razak.
Najib, who is slated to succeed Prime Minister Abdullah Ahmad Badawi when he steps down next March, said that although the economy would expand by 5.7 percent this year, growth would slow substantially in 2009.
"Taking into account all global factors and the steps taken in the 2009 budget, I want to announce that our GDP has been revised for 2009 to 3.5 percent," he told a rowdy session of parliament during which he was continuously interrupted.