Malaysia's economy to shrink 3.3 pc in 2009 : Think tank

Malaysia's economy is showing signs of a slow recovery, a leading
think tank said Wednesday as it raised its 2009 forecast to a 3.3
percent contraction from 4.2 percent tipped earlier. However, the
Malaysian Institute of Economic Research (MIER) said Southeast Asia's
third- largest economy may need a third stimulus package worth 8.0
billion ringgit (2.4 billion dollars) next year to spur the recovery
process. The MIER also upgraded its 2010 growth forecast to a 3.7
percent expansion from 2.8 percent forecast in July, in anticipation
of a modest economic recovery worldwide. "There are glimmer signs
that the global downturn has stabilised somewhat, but the recovery
is expected to be sluggish and uneven," the influential institute
said in a report. "Malaysia may not regain more strength until the
global economy is back on track, which is going to be at a
disappointingly slow pace," it added.