Malaysia tables 2.69 bln dlr spending plan

Malaysia on Thursday tabled in parliament plans for a ten billion ringgit (2.69 billion dollar) spending plan to help bolster the economy amid fears it is on the brink of a recession.

The new stimulus package, also called a mini-budget, follows a seven billion ringgit plan announced in November that is being spent on "high-impact" projects including roads, schools and low-cost housing.

Deputy finance minister Kong Cho Ha said that more measures may be revealed next week when deputy premier Najib Razak, who is also the finance minister, is due to give the house a fuller explanation of the spending plan during the second reading.

"What was tabled today is five billion for operational (spending) plus five billion for development. There may be more things coming," Kong told reporters following the first reading of the bill in parliament.

Najib had been quoted as saying that the new spending package would be focused on helping companies and workers affected by the global slowdown.

Second Finance Minister Nor Mohamed Yakcop said in January that the impact from the first stimulus programme would be felt around the first quarter of this year.

On Wednesday, an influential think tank said Malaysia was on the brink of a recession as falling demand hits exports and manufacturing with growth expected to reach just 0.5 percent for the year.

The Malaysian Institute of Economic Research (MIER) had in January already slashed its growth forecast to 1.3 percent from an earlier 3.4 percent prediction while the government is sticking to its 3.5 percent growth for 2009.

Official data released last week showed Malaysia's economic growth slowed to just 0.1 percent in the fourth quarter of 2008, hit by falling exports and manufacturing as demand continues to evaporate.