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Yahoo! My Yahoo! Mail Yahoo! Search Search: Sign InNew User? Sign Up News Home - Help Navigation Primary Navigation Home Singapore Asia Pacific World Business Entertainment Sports Technology Top Stories Most Popular Secondary Navigation Australia China India Indonesia Japan Malaysia Philippines Thailand Vietnam Search Search: Malaysia on brink of recession: think tank AFP - 2 hours 16 minutes ago KUALA LUMPUR, March 4, 2009 (AFP) - Malaysia stands on the brink of recession as falling demand hits exports and manufacturing with growth expected to reach just 0.5 percent for the year, an independent think tank said Wednesday. ADVERTISEMENT "We forecast the economic growth for the first half of the year will be negative which will put us in a technical recession but show positive figures in the second half," Mohamed Ariff Abdul Kareem, head of the Malaysian Institute of Economic Research told AFP. "Overall, it will be 0.5 percent growth for this year in the best-case scenario. The worst-case scenario is there is a 50 percent chance of a full-blown recession this year," he warned. In January, the institute slashed its gross domestic product 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. Mohamed Ariff said the fiscal deficit could surge to eight percent of GDP if a second economic stimulus package to be unveiled by the government on March 10 was more than 30 billion ringgit (8.1 billion dollars). "It could be between six and eight percent depending on the size of the stimulus package," he said. Malaysia last year unveiled a 2.0 billion dollar stimulus package to help boost the economy and keep the country out of recession but Deputy Premier Najib Razak said the second package would be bigger and more comprehensive. The government has already widened its deficit forecast for 2009 to 4.8 percent, from the 3.6 percent predicted in August, due to the additional government spending. 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. Email Story IM Story Printable View Blog This Recommend this article Average (0 votes) Sign in to recommend this article » Most Recommended Stories » Related Articles: Asia Pacific Prosecutors raid Japan opposition leader's officeAFP - 1 hour 10 minutes ago Japan opposition leader won't quit despite scandalAP - 1 hour 13 minutes ago Pakistan: Gunmen in rickshaws attack cricket teamAP - 1 hour 18 minutes ago Worst of Australian wildfire season declared overAFP - 1 hour 26 minutes ago Indian Malaysian held was beaten to death: LawyerAP - 1 hour 41 minutes ago Most Popular – Asia Pacific Viewed Obama releases Bush-era secret terror memos Space rock gives Earth a close shave Ladyboy lizards use transvestite trickery: researchers Global stock markets dive on financial fears Wall Street sees fresh lows on financial turmoil View Complete List » Search: Home Singapore Asia Pacific World Business Entertainment Sports Technology Top Stories Most Popular Copyright © 2009 Yahoo! Southeast Asia Pte Ltd. (Co. Reg. No. 199700735D). All Rights Reserved. Privacy Policy - Terms of Service - Community - Intellectual Property Rights Policy - Help

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