Published October 1, 2008
Govt may review growth target, says Najib

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(PUTRA JAYA) Malaysia may review its growth targets for 2008 if the global economy worsens amid deepening financial turmoil, Finance Minister Najib Razak said yesterday.
'If the current situation leads to a significant downturn, then we would have to re-evaluate' the targets, Mr Najib said.
'While the economy is affected by the global economic slowdown, we're a more diversified economy and stronger links to Asia will allow us to be in a better position to weather this challenging period.' Malaysia's government forecast last month growth will slow to 5.7 per cent this year from 6.3 per cent in 2007.
Asian stocks plunged yesterday after the rejection of a US bailout plan. Malaysia's ringgit touched 3.4595 a US dollar, the weakest level since Sept 19.
'As far as I'm concerned the ringgit still reflects the true value of the fundamentals of the economy,' said Mr Najib. Malaysia isn't facing a shortage of US dollars, he added.
Malaysia should be able 'to withstand external shocks,' Mr Najib said.
'Liquidity in the banking system remains ample,' funding continues to expand, international reserves are high and non-performing loans have fallen to 2.5 per cent of total lending, he said. Exports to Asia will counter declining US demand, Mr Najib said.
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The country's exports to the US have fallen to 16 per cent of total overseas sales last year from 20 per cent in 2003, while shipments to South-east Asia, China and India have climbed, he said. -- Bloomberg