Malaysia on Tuesday unveiled new government spending worth 60 billion Malaysian ringgit ($16.27 billion) over two years in an effort to bolster demand in the export-dependent Asian economy.

The package announced by Deputy Prime Minister Najib Razak marked a sharp reversal from the first round of spending to boost the economy which was worth just 7 billion ringgit ($1.9 billion) or 1.1 percent of gross domestic product.

It was also far more than the 30-35 billion ringgit expected by economists in their most recent forecasts.

"The mini-budget of 60 billion ringgit, the biggest ever stimulus package unveiled by the government, accounting for 9 percent of GDP, will be implemented over two years - 2009 and 2010," Najib told parliament.

Najib will become prime minister on March 31.

Malaysia is the third-most export dependent country in Asia after Hong Kong and Singapore relative to the size of its economy and job losses have been mounting as companies like Western Digital and Panasonic and have shuttered plants.

Exports in January plunged 28 percent from a year earlier, according to the most recent data, and the economy grew just 0.1 percent in the fourth quarter of 2008 from a year earlier.


Reuters