Malaysia: The action plan

SUPPLEMENT - THE 2009 GUIDE TO MERGERS & ACQUISITIONS - June 01, 2009

Raslan Loong

Address

Level 3A, Menara Manulife 6 Jalan Gelenggang, Damansara Heights, 50490 Kuala Lumpur Malaysia

Telephone

+603 2093 3939

Fax

+603 2093 4848

Malaysia's growth in 2009 is estimated to be between minus 1% and 1%, down from earlier projection of 3.5% due to the deteriorating global economy. In January 2009, exports fell by 27.8%, and for 2009, foreign direct investment is expected to decline by almost 50% of 2008's investment to RM62.9 billion. Unemployment rate is expected to rise to 4.5% in 2009 from 3.7% in 2008. Prices of Malaysia's main commodities, oil and gas, and palm oil have declined sharply and consumer and investor sentiments have been adversely affected by the fall in the stock market.

As the global economy contracts, the Malaysian government has joined the ranks of countries directly hit by the global turbulence to adopt an aggressive monetary and fiscal stimulus schemes to cushion its domestic economy from collapse. On March 10 2009, the government unveiled a RM60 billion stimulus package (dubbed a...



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