Najib's 60 billon Stimulus Package

Datuk Seri Najib Tun Razak unveiled a stimulus package worth RM 60 billon but warned the export-driven economy could still shrink by 1.0 per cent this year despite the massive spending.The RM60 billion plan was much larger than expected, and comes with the South-east Asian nation fighting slowing growth as the global downturn driesup demand for its exports in the United States and Europe.'

The implementation of such a large stimulus package is unprecedented in the Malaysia's economic history,' said deputy premier and Finance Minister Najib Tun Razak, who will take over as Prime Minister at the end of this month.He said the package would 'contribute towards mitigating the impact of the global contraction on the domestic economy'. But despite the measure, and 7 billion stimulus package announced last year, he said the economy could still be headed for a contraction.

The government had previously stuck to its 2009 forecast of 3.5 per cent growth.'Taking into account these measures, GDP growth is expected to be in therange of minus 1.0 per cent to 1.0 per cent for 2009. Without these efforts the economy faces the prospect of a deep recession,' he told parliament.The plan accounts for almost 9 per cent of GDP and will be implemented over 2009 and 2010.