Malaysia rules out new steps

Malaysia rules out new steps

KUALA LUMPUR (AFP): Malaysian Finance Minister Anwar Ibrahim
yesterday ruled out additional steps to boost the beleaguered
economy but said measures in the 1998 federal budget may be
finetuned.

"(There will be) no other major measures other than what was
announced in the budget but minor adjustments can be made and we
should be given the flexibility from time to time," Anwar told
reporters.

Analysts had said the 1998 budget announced last Friday had
not met expectations and failed to address the country's swollen
current account deficit problem.

The disappointing budget and mounting regional concerns sent
the Malaysian stock market and ringgit plunging since Monday.

But Anwar, who is also deputy premier, expressed confidence
that regional bourses, hit by a new wave of panic selling
Thursday, would be able to "withstand the onslaught."

"We are monitoring (but) we believe in fundamentals. We will
be roaring to move forward," he added.

Asked if he would rule out a rise in interest rates in the
medium term to help stabilize the ringgit, Anwar said: "I will
give you an answer in three months time."

But he hinted there would be no such move, adding, "we have to
maintain a balance to generate growth, confidence and to allow
the private sector to generate activity. That is the policy."

Anwar urged local banks to "maintain (their) level of prudence
in their management of their resources and portfolios," referring
to their forced selling activities which have further dragged
down share prices.

"I always believe in market forces and the invisible hand ...
there's always a need to balance the two," he said.

Anwar said the government was in contact with the
International Monetary Fund (IMF) "mainly over the issue of rules
and regulations about currency trading."

Asked if Malaysia would seek IMF help to overcome its
financial turmoil, he said: "We have not discussed the need for
IMF right now or in the foreseeable future."

"I am optimistic the ringgit will strengthen to its previous
levels," he added.