Finance Minister II Nor Mohamed Yakcop is convinced that Malaysia is not in a technical recession despite the nation feeling the impact of the global economic crisis.

Speaking to reporters after his winding-up speech on motion of thanks on the royal address in Parliament today, Nor Mohamed said technical recession only happens when there are two consecutive quarters of negative growth.

nor mohamed yakcop second finance minister "And we are not even in the first quarter yet," said Nor Mohamed, adding that the figure for the period is still unknown.

However, recession looks to hit us soon because last week the government had announced that the economy only registered a 0.1 percent growth for the last quarter of 2008 amidst the fall of exports following low demands.

"It is not important whether we are in technical recession or not, but we certainly are facing very challenging time," he stressed.

Nor Mohamed however conceded that a small nation like Malaysia was feeling the pinch on the global crisis as it was dependent on international trades.

Less than 10 pct of RM7 billion spent so far

Earlier, in his winding-up speech in the House, Nor Mohamed has revealed that only RM567.9 million from RM7 billion stimulus package has been spent since January this year.

With that, he added, RM5 billion has been distributed to 20 ministries and agencies involved and was now in the process of implementation.

"Until now, 8,474 projects worth RM567.9 are being implemented," he said.

From this amount, according to Nor Mohamed, 6,239 projects worth RM329.5 million were for public infrastructure and basic infrastructure projects.

There were also some suggestions by Fong Po Kuan (DAP-Batu Gajah), asking the ministry to table a report on the RM7 billion stimulus package as announced by Deputy Prime Minister Najib Abdul Razak last November, but this, Nor Mohamed said, should be taken up to the cabinet.

The minister further gave an assurance said that the second stimulus package or a mini-budget which will be tabled on March 10 will have a wider scope to cushion off the economy as it was "bigger and more comprehensive".

Ringgit doing better than other currencies

The Finance Ministry told the Dewan Rakyat today that although the country's exports are low, the performance of the Ringgit is much higher than other currencies in the region.

ahmad husni hanadzlah "The Ringgit value has suffered a diminution compared to the US Dollar, especially in the second quarter of 2008... this is because of the de-leveraging activity in the US to strengthen the US Dollar after failure of several main investment banks and deterioration of their economy," said Deputy Finance Minister Ahmad Husni Hanadzlah.

He said this in response to questions by Wira Ahmad Hamzah (Jasin-BN) and Alexander Nanta Linggi (Kapit-BN) on the factors that caused the value of the Ringgit to decrease compared to the US Dollar and Singapore Dollar (SGD) although both countries are experiencing an economic downturn.

In response to Tan Seng Giaw's (Kepong-DAP) supplementary question on the fundamentals that are being used by Malaysia as well as those used in Singapore and US, Ahmad Husni said Malaysia used the 'managed float' system where the Ringgit is floated but the trade (buying and selling) is conducted in the country.

In comparison, Singapore applied the zero appreciation regime which allows for the depreciation of the Singapore Dollar.

Ahmad Husni said the zero appreciation regime practiced by Singapore was to lower the value of the currency and induce the country's exports in order to cushion the recession.

'Mechanism to handle rudeness'

In another development, Abdul Rahman Dahlan (Kota Belud-BN) asked the Ministry of Unity, Culture, Arts and Heritage whether there is a mechanism to manage the ‘rudeness of individuals’ as portrayed by Karpal Singh (Bukit Gelugor-DAP) and his son Gobind (Puchong-DAP).

Abdul Rahman said their attitude could threaten unity.

He suggested that members of the opposition attend a special course to learn about manners and Umno Youth would support the fees.

In response, Deputy Minister Teng Boon Soon said the objective of community-based art programmes under the ministry is to nurture good values and instil good manners.

“I think every MP here is aware of these values as the values are also part of the five principles in the Rukun Negara... but from time to time it is forgotten and needs to be reminded,” he added.