KUALA LUMPUR: The government’s existing stimulus packages are sufficient to support the economy, Second Finance Minister Datuk Seri Ahmad Husni Mohamad Hanadzlah said.

He said no further stimulus packages would be announced as the existing ones were sufficient to prevent the economy from contracting beyond the revised 2009 gross domestic product (GDP) forecast of a contraction of between 4% and 5%.

“Our revised GDP  forecast of between -4% and -5% this year has factored in the effects of the stimulus packages,” he told reporters on the sidelines after witnessing the signing ceremony between RHB Bank Bhd and Japan Bank of International Cooperation of the third US$100 million (RM348 million)untied loan agreement here yesterday.

Husni said the government would monitor closely the country’s development expenditure as well as the disbursement of the stimulus packages to ensure that  these initiatives were rolled out effectively.
He said from the look of the current global economic indicators, the country’s economy should see improvements from the third quarter onwards.  

“Our exports have suffered an average of 20% from January to April this year, causing shrinkage to economic growth.
“However, based on our forecast, we believe that the third and fourth quarter would be better and we will be back in positive growth next year,” he said, adding that the government expected economic growth to remain positive for the whole of 2010.

Meanwhile, Husni said the MoF was in discussions on how the new economic model under the economic council headed by Tan Sri Amirsham Aziz would appear.

“We have to study the global economic indicators first,” he said, adding the decision would be made within the year.

In his earlier keynote address at the signing ceremony, Husni said close to RM1.2 billion was approved under the Working Capital Guarantee Scheme and Industry Restructuring Loan Guarantee Scheme.

He said the government had received 1,090 applications by 22 banks for the scheme. Out of the total amount of RM1.2 billion, RM1.17 billion was for working capital while RM40 million was for the industry restructuring loan scheme.