(AFP) Malaysia's budget for next year to be unveiled in October will focus on efforts to increase local investments to boost economic growth, Prime Minister Mahathir Mohamad said.

The country can no longer rely on foreign investments to pump prime the economy as these are likely to shrink with foreigners seeking out cheaper countries such as China, the premier was quoted as saying late Sunday by Bernama news agency.

Mahathir, who is acting finance minister, said the government has identified various manufacturing sectors which could be developed further.

Asked whether the 2002 budget would be a people's budget or a corporate budget, the premier said: "...for sure it is for the nation's development to benefit the people."

Mahathir temporarily took over the finance portfolio following the unexplained resignation of Daim Zainuddin on June 1.

He has said he would chair the traditional pre-budget dialogue with various organisations beginning this week. But he sidestepped a question on whether he would deliver the 2002 budget in parliament in October, saying only he was familiar with the process as he had also announced the budget in 1998.

Growth revised downwards

Bernama said the premier today asked staff of the finance ministry to support him to ensure efficient administration of the country's finances.

"I hope during my tenure as finance minister, which is still short, I will get the same support and performance," Mahathir said.

"If we are not efficient in managing our country's finances and we are not wise in our spending, we will ... need to keep on asking from those who wish to dominate us."

The government in March revised downwards its economic growth forecast this year to between five and six percent, from seven percent previously, amid the US-led global slowdown.

Most analysts predict the economy will grow by less than half the 8.5 percent rate of last year.