KUALA LUMPUR, Oct 7 (Reuters) – Malaysia said on Friday it planned to boost infrastructure and consumer spending to cushion the impact of the global economic downturn and bolster confidence in the run-up to an expected general election in early 2012.

Prime Minister Najib Razak also handed out cash payments to the poor, raised civil servants’ pay and opened up 17 service subsectors to foreign investors, with domestic demand targeted to be the key driver of the economy as a possible global recession clouds the outlook.

“Global developments would certainly have a direct impact on the Malaysian economy,” Najib, who is also Finance Minister, said as he presented the 2012 budget in parliament.

“With these developments the government will put in place measures to stimulate domestic economic activities, in particular public and private investments.”

The government also allocated 2 billion ringgit of infrastructure projects for bumiputras, most of whom are ethnic Malays. It offered tax breaks for Islamic bond issuance, raised civil servant pensions and announced that it would list the global arm of its plantation group FELDA.

Najib forecast that the economy would grow 5-6 percent in 2012, while the fiscal deficit would fall further on the strength of robust domestic demand and commodities exports.

Reflecting the downdraft on Asia from the slowdown in the United States and Europe, the government trimmed its 2011 economic growth target to 5.0-5.5 percent from 5.0-6.0 percent earlier.

KUALA LUMPUR, Sept 30 (Reuters) – GDP (pct,y/y) Q2 ’11 Q1 ’11 Q4’10 Q3 ’10 Q2 ’10 Q1 ’10 Q4 ’09 Q3 ’09 Q2 ’09 4.0 4.9 4.8 5.3 8.9 10.1 4.4 -1.2 -3.9

INDUSTRIAL PRODUCTION (pct, y/y) JUL JUN MAY APR MAR FEB JAN DEC NOV OCT SEP AUG JUL JUN -0.6 1.3 -5.6 -1.7 2.9 5.0 1.0 4.2 5.1 3.1 5.6 4.0 3.2 9.4

MANUFACTURING SECTOR (Production index (pct,y/y) JUL JUN MAY APR MAR FEB JAN DEC NOV OCT SEP AUG JUL JUN 1.5 4.5 0.6 -0.4 5.3 7.9 4.5 7.8 6.5 4.5 7.6 6.8 7.2 13.3

MINING SECTOR (Production index (pct,y/y) JUL JUN MAY APR MAR FEB JAN DEC NOV OCT SEP AUG JUL JUN -7.5 -8.6 -20.1 6.9 -6.9 -4.0 -0.7 -6.7 -3.4 1.7 -1.1 1.7 -2.9 -5.9

ELECTRICITY SECTOR (Production index (pct,y/y) JUL JUN MAY APR MAR FEB JAN DEC NOV OCT SEP AUG JUL JUN MAY 4.6 3.6 -1.6 -0.7 0.7 0.7 0.3 2.4 4.9 5.0 3.1 4.9 4.4 5.2 11.5

MANUFACTURING SALES (pct, y/y) JUL JUN MAY APR MAR FEB JAN DEC NOV OCT SEP AUG JUL JUN 10.8 12.9 8.0 15.5 14.1 10.9 7.7 11.4 8.4 2.9 7.6 8.9 9.3 13.8

CONSUMER PRICE INDEX AUG JUL JUN MAY APR MAR FEB JAN DEC NOV OCT SEP (pct, y/y) 3.3 3.4 3.5 3.3 3.2 3.0 2.9 2.4 2.2 2.0 2.0 1.8

KUALA LUMPUR (Reuters) – Malaysian Prime Minister Najib Razak will likely press ahead with snap polls by early 2012, banking on government handouts and moderating inflation to soothe worries about the economy but a possible global recession could jeopardize his chances.

Europe’s debt crisis and an anemic U.S. economy have reined in price pressures, the biggest worry among Malaysian voters, but also triggered fears about job security and the general outlook for the trade-reliant economy.

The government’s coffers have been bolstered by a strong run in commodity prices, enabling Najib to dole out cash payouts to farmers and civil servants and provide affordable housing and healthcare to the poor to tackle the rising cost of living.

“The government has started to address inflation concerns of the electorate but the measures taken so far are spread too thin to have an impact on swaying support,” said Ibrahim Suffian, director of the independent opinion outfit Merdeka Center.

“For the key constituents and undecided voters in the lower to middle income groups, a broader improvement of the national economic climate will still be needed for the government to feel a positive impact,” said Ibrahim.

The next general election is only due in 2013 but the recent handouts coupled with moves to reform an unpopular security law have fueled talk that Najib is gearing up for early polls to pre-empt any further fallout from the deteriorating economic outlook.

Najib needs to reverse his ruling coalition’s poor showing in a 2008 general election but his approval ratings have fallen over the past year amid rising prices, widening religious discontent and anger over the slow pace of promised reforms.

KUALA LUMPUR, Sept 27 (Reuters) – Malaysian Prime Minister Najib Razak will likely press ahead with snap polls by early 2012, banking on government handouts and moderating inflation to soothe worries about the economy but a possible global recession could jeopardise his chances.

Europe’s debt crisis and an anaemic U.S. economy have reined in price pressures, the biggest worry among Malaysian voters, but also triggered fears about job security and the general outlook for the trade-reliant economy.

The government’s coffers have been bolstered by a strong run in commodity prices, enabling Najib to dole out cash payouts to farmers and civil servants and provide affordable housing and healthcare to the poor to tackle the rising cost of living.

“The government has started to address inflation concerns of the electorate but the measures taken so far are spread too thin to have an impact on swaying support,” said Ibrahim Suffian, director of the independent opinion outfit Merdeka Centre.

“For the key constituents and undecided voters in the lower to middle income groups, a broader improvement of the national economic climate will still be needed for the government to feel a positive impact,” said Ibrahim.

The next general election is only due in 2013 but the recent handouts coupled with moves to reform an unpopular security law have fuelled talk that Najib is gearing up for early polls to pre-empt any further fallout from the deteriorating economic outlook.

Najib needs to reverse his ruling coalition’s poor showing in a 2008 general election but his approval ratings have fallen over the past year amid rising prices, widening religious discontent and anger over the slow pace of promised reforms.

KUALA LUMPUR, Sept 21 (Reuters) – GDP (pct,y/y) Q2 ’11 Q1 ’11 Q4’10 Q3 ’10 Q2 ’10 Q1 ’10 Q4 ’09 Q3 ’09 Q2 ’09 4.0 4.9 4.8 5.3 8.9 10.1 4.4 -1.2 -3.9

INDUSTRIAL PRODUCTION (pct, y/y) JUL JUN MAY APR MAR FEB JAN DEC NOV OCT SEP AUG JUL JUN -0.6 1.3 -5.6 -1.7 2.9 5.0 1.0 4.2 5.1 3.1 5.6 4.0 3.2 9.4

MANUFACTURING SECTOR (Production index (pct,y/y) JUL JUN MAY APR MAR FEB JAN DEC NOV OCT SEP AUG JUL JUN 1.5 4.5 0.6 -0.4 5.3 7.9 4.5 7.8 6.5 4.5 7.6 6.8 7.2 13.3

MINING SECTOR (Production index (pct,y/y) JUL JUN MAY APR MAR FEB JAN DEC NOV OCT SEP AUG JUL JUN -7.5 -8.6 -20.1 6.9 -6.9 -4.0 -0.7 -6.7 -3.4 1.7 -1.1 1.7 -2.9 -5.9

ELECTRICITY SECTOR (Production index (pct,y/y) JUL JUN MAY APR MAR FEB JAN DEC NOV OCT SEP AUG JUL JUN MAY 4.6 3.6 -1.6 -0.7 0.7 0.7 0.3 2.4 4.9 5.0 3.1 4.9 4.4 5.2 11.5

MANUFACTURING SALES (pct, y/y) JUL JUN MAY APR MAR FEB JAN DEC NOV OCT SEP AUG JUL JUN 10.8 12.9 8.0 15.5 14.1 10.9 7.7 11.4 8.4 2.9 7.6 8.9 9.3 13.8

CONSUMER PRICE INDEX JUL JUN MAY APR MAR FEB JAN DEC NOV OCT SEP AUG (pct, y/y) 3.4 3.5 3.3 3.2 3.0 2.9 2.4 2.2 2.0 2.0 1.8 2.1

KUALA LUMPUR (Reuters) – Malaysian Prime Minister Najib Razak’s pledge to speed up civil liberty reforms to attract middle-class voters could hurt his chances in general elections expected early next year by alienating conservatives.

Najib said in a televised address on Thursday an Internal Security Act (ISA), enacted in 1960, and Emergency Ordinance, both of which allow for indefinite detention without trial, would be repealed and replaced by two news laws for use mainly against suspected militants.

By repealing or changing the security laws, which critics say have stifled freedom of expression, Najib faces resistance from influential conservatives who want a tougher stance against political dissidents.

But any failure to deliver on those pledges is likely to anger an electorate, already upset with the glacial pace of reforms, clouding the outlook for Najib’s ruling coalition at the ballot box.

“If reform resistance emerges and grows or if there is no substantive change, then his chances of achieving his aim (of securing a strong election win) becomes less certain,” said Ibrahim Suffian, director of Merdeka Centre, an independent opinion polling outfit.

Najib has promised political and economic reforms in 2008 in a bid to reverse his ruling coalition’s record losses in a general election. He will need to deliver on those pledges to stay firmly in power.

As part of his pledges on Thursday, a strict media law will also be changed to allow greater media freedom and other legislation restricting civil liberties would be reviews.

KUALA LUMPUR (Reuters) – Malaysian Prime Minister Najib Razak’s pledge to speed up civil liberty reforms to attract middle-class voters could hurt his chances in general elections expected early next year by alienating conservatives.

Najib said in a televised address on Thursday an Internal Security Act (ISA), enacted in 1960, and Emergency Ordinance, both of which allow for indefinite detention without trial, would be repealed and replaced by two news laws for use mainly against suspected militants.

By repealing or changing the security laws, which critics say have stifled freedom of expression, Najib faces resistance from influential conservatives who want a tougher stance against political dissidents.

But any failure to deliver on those pledges is likely to anger an electorate, already upset with the glacial pace of reforms, clouding the outlook for Najib’s ruling coalition at the ballot box.

“If reform resistance emerges and grows or if there is no substantive change, then his chances of achieving his aim (of securing a strong election win) becomes less certain,” said Ibrahim Suffian, director of Merdeka Center, an independent opinion polling outfit.

Najib has promised political and economic reforms in 2008 in a bid to reverse his ruling coalition’s record losses in a general election. He will need to deliver on those pledges to stay firmly in power.

As part of his pledges on Thursday, a strict media law will also be changed to allow greater media freedom and other legislation restricting civil liberties would be reviews.

KUALA LUMPUR (Reuters) – Malaysian Prime Minister Najib Razak repealed two controversial security laws and lifted licensing curbs on the media on Thursday, as he sought to bolster his flagging popularity ahead of likely snap polls early next year.

The changes are part of long-promised political reforms and come amid growing public anger at what is viewed as the authorities’ reluctance to make good on pledges to overhaul economic and government policy.

In a televised speech ahead of the 48th anniversary of the country’s independence, Najib abolished the Internal Security Act and Emergency Ordinance, which allow for indefinite detention without trial. They would be replaced by two news laws for use mainly against suspected militants.

The country’s strict media law will also be amended to allow a one-time licensing of media outlets instead of annual renewals which critics say the government has used to threaten newspapers against publishing dissenting views.

Other laws which restrict civil liberties would be reviewed, and Najib pledged that the government would not detain any individuals merely on the basis of their political ideology.

“Many will question whether I am moving too far, too fast. Some will say that the reforms should only be carried out in small steps, or not at all,” Najib, flanked by his cabinet members, said in the address.

“To them I say, if a reform is the right thing to do, now is the right time to do it.”

KUALA LUMPUR (Reuters) – A recent slew of populist measures has strengthened expectations that Malaysian Prime Minister Najib could call a snap election within the next 6 months, as he seeks a mandate to execute economic reforms and strengthen his grip on power.

Bonus payments for civil servants, a cash payout for farmers and affordable housing for low-income earners are among the steps the government has taken to cushion the impact of higher prices and address a major gripe among voters.

Najib is also expected to announce several political reforms on Thursday, including amending a controversial security law to make good on promises to allow increased freedom of speech.

The government’s popularity has taken a dip over the past year because of anger over the rising cost of living, the slow pace of political reforms and widening religious discontent.

Analysts say Najib has two options: hold snap polls to cut his losses or delay elections, which would buy him time to appease disgruntled ethnic minorities.

The following are possible scenarios on the timing of the next general election, which is not due until 2013, and the implications for reforms.

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