The government will fast forward 26 development projects worth some RM2.4 billion to revive a subdued construction sector and strengthen the economy, Prime Minister Abdullah Ahmad Badawi said today.

The projects were originally scheduled under a five-year development masterplan beginning 2006 but they will be implemented immediately, said Abdullah, who is also finance minister.

He noted that the construction sector had contracted by 1.9 percent last year and was expected to continue shrinking.

"It could be seen as a shot in the arm for the (construction) sector which is very sluggish today. In any case, we are going to spend money also in the future, so it's a matter of bringing forward and injecting that growth. It is not a stimulus package," he told reporters.

Asked about the schemes, he said they would include infrastructure projects, and building schools and hospitals.

The projects would serve as a catalyst for growth to boost Malaysia's economic expansion which was expected to slow to between five and six percent this year after 7.1 percent in 2004.

"I think we have a good opportunity to achieve the growth target, perhaps we want to do better than that," he said.

Keeping costs low

Abdullah said the move would not affect the government's target of lowering its budget deficit to 3.8 percent of gross domestic product this year from 4.5 percent in 2004.

The government would strive for a balance between being prudent to trim its budget deficit and sustaining robust economic growth, he said. All projects must use only local building materials and products to keep costs low.

"I think we can (achieve it). We are targetting 3.8 percent," he added.

Since succeeding veteran strongman Dr Mahathir Mohamad in November 2003, Abdullah has moved away from the large infrastructure projects favored in the past to smaller development schemes to keep the deficit in line.