On 27 March, 2001, the Prime Minister Dato' Seri Dr Mahathir Mohamad announced in the corridor of Malaysian Parliament a RM 3 billion package to stimulate the economy. This is to cushion the slowdown in the U. S. economy. The following day Zeti presented the annual report of Bank Negara, the Malaysian Central Bank. These are measures to prevent the country from sliding into doldrums.

Ever since the 1997 economic crisis, Malaysia has not recovered fully. As expected, we are facing US economic woes. Being the biggest economy in the world, US economic woes affect the world.

We hope that Malaysians will face the economic difficulty together and that Zeti's prediction of 5% to 6% economic growth will be achieved. The 2001 budget estimates the growth at 7%. Some people believe that it will be 3% to 4%.

INVESTORS' CONFIDENCE

Currently, 23% of Malaysian economic output, mostly electronic products, are exported to the U.S. Electronics is a big part in the manufacturing sector. Last year, the sector grew at 25%. This year, it is predicted to be 8.5%.

We need foreign investment. Then, we must inspire confidence among the investors. Recently, it is thought that the composite index of the Kuala Lumpur Stock Exchange will break the 1,000 mark. Instead, it plummets to about 663 points despite the announcement of the stimulus package. Although the composite index may not necessarily represent the whole Malaysian economy, it is an indicator that investors do not have confidence.

While Malaysians must help to the country to fend against the U.S. economic woes, we would like to see the Government increase its efforts towards an efficient, clean and trustworthy governance.

For example, the Government revives the RM 9 billion Bakun hydroelectric project, and proceeds with Tanjung Pelepas, Johor, and Klang West Port projects. She would have to show openness, fairness and transparency. Open or closed tender, appointments of contractors and monitoring mechanism attract public interest. If these impress the investors, they will help to create an atmosphere for foreign investment.