KL package to boost economy

KL package to boost economy

KUALA LUMPUR (AP): The government will announce a string of measures worth several billion ringgit (about US$1 billion) to strengthen Malaysia's economy and cushion the impact of the U.S. financial slowdown, news reports said Monday.

Prime Minister Mahathir Mohamad is expected to disclose details of the package - which will probably include funding for public works, agriculture and loans to small and medium-sized industries - sometime this week, The Star daily cited sources as saying. The paper did not identify its sources.

Malaysia's economy expanded by 8.5 percent last year, and the government is targeting growth of between 6 and 7 percent this year. But some analysts say that economic growth would more likely be about 4 percent if the U.S. slowdown worsens.

The United States is Malaysia's main trading partner. The strong demand for Malaysian exports of electronic goods and components in the United States helped lift the Southeast Asian nation out of the 1997-98 Asian financial crisis.