MALAYSIA TO FORGE NEW ECONOMIC MODEL -- MALAYSIAN DPM

KUALA LUMPUR, March 19 (Bernama) -- Malaysia will use the current global
economic downturn as a springboard to forge a new economic model by using
knowledge as its lead, Deputy Prime Minister Najib Razak said Wednesday.

"We will invest in education and technology, further strengthening the
country's capacity to lead in information technologies, renewable energy and
emerging sectors of the new economy," said Najib, who is also the Finance
Minister.

The goal, he said, is to harness the talent, energy and drive of all
Malaysians.

"We will be aided in our efforts to provide lasting prosperity by working to
spread mutual tolerance and respect between genders, cultures, races, religious
and nations," Najib said.

"We will champion inclusiveness not just because it is a foundation for
political stability and economic growth, but because it is right," he said.

Najib said the country is fortunate today to have good national
infrastructure, technical know-how, a diversified economy and a quality
workforce to cushion the impact of the global financial crisis.

Malaysia, according to him, has learned fundamental lessons from the 1997
financial crisis.

"Overall, post 1997 we are far better placed to weather this new storm. Yet
in the long run, further transformation of the Malaysian economy is needed," he
said in the Editorials & Opinion section of the Wall Street Journal Wednesday.

Najib said the global economic crisis has demonstrated anew that relying on
the behaviour of markets alone was insufficient to promote stable, long-term
economic development.

"When economic crisis hit, one has a choice. Those steering national
economies can either stand aside, or use public capital to take the place of
private capital that has gone into hiding, thereby investing in the country's
human capital," he said.

"In the short term, this kind of action provides jobs and opportunity, and
in the long run, the foundation for recovery."

Najib said stimulus packages should not be about resorting to popular
policies or handing out cash and should not target one group or area but benefit
the whole country.

"It is about achieving maximum impact," he said.

Najib said Malaysia has focused on boosting investments and credit flows
while providing government guarantees and infrastructure expansion.

He said foreign investment in Malaysia is expected to fall by 50 percent to
RM26 billion this year.

"That means we must either respond domestically, or allow our country to
waste precious years during which we should be working to build a better
society," he added.

Answering crtics who said the second stimulus packages was too much, Najib
said Malaysia has the capcity to fund it because of low foreign debt, large
international reserves and ample banking sector liquidity.

"I am convinced the risk isn't that we do too much, but that we don't do
enough," he said.

Najib said ultimately, the world will recover, and normal trade levels will
resume, and when it does, the government wants Malaysia to be best positioned to
take advantage of the recovery.

For this reason, he said the government has decided to balance short-term
requirements with building for the future.

Najib said the RM60 billion two-year mini budget was designed to provide a
quarter of the stimulus funds as a boost to meet people's immediate needs, while
the remaining 75 percent for medium- and long-term development goals.

Efficient implementation is vital in the success of any country's stimulus
package, he said.

Therefore, Najib said he would be chairing a steering committe to receive
reports on implementation of the second stimulus package from a technical
committee that has been given the task of monitoring.

"As a nation in a hurry, with millions dependent on its development and
progress, Malaysia is picking itself up and moving on. We are remaking Malaysia
once again," he said.
-- BERNAMA