Page last updated at 11:25 GMT, Thursday, 5 March 2009

Malaysia in $2.7bn economy boost

shoppers in hyper market in Petaling Jaya
The government is worried Malaysia may slip into recession

The Malaysian government has unveiled plans to spend another 10bn ringgit ($2.7bn; £1.9bn) in a further attempt to revive the nation's economy.

The move takes total stimulus spending to 17bn ringgit. But some analysts say it will not prevent Malaysia sliding into its first recession since 1998.

Malaysia's economy - which is heavily dependent on manufacturing - grew by 0.1% in the last three months of 2008.

This took annual growth to 4.6% - below official targets.

The second stimulus plan has been tabled in parliament, though full details will not be released until next week.

A recent study by AmSearch estimated that at least 40bn ringgit needed to be spent by the government to prevent the economy contracting in 2009.

It also suggested that the slump in manufacturing - which has been triggered by falling demand from overseas - would continue until at least September.

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