Mr Najib, who is also the country's finance minister, said he was reasonably confident that the country would meet its economic growth targets for 2008 and 2009.

'We are very open to additional measures that can be taken from time to time. Obviously we are watching and monitoring the situation very very carefully,' he told reporters.

Economic growth in the South-east Asian country of 27 million people is expected to slow to 3.5 per cent next year, according to government forecasts, much lower than its earlier prediction of 5.4 per cent, although many economists think that is still too bullish.

But Mr Najib said he was confident the target would be met.

'At the moment we are still reasonably confident that we can achieve the target of growth figures for this year and for next year,' he said.

Last week, the government announced it was waiving import duties on raw materials and unfinished goods to help the exporter avoid a big slowdown. It then said the move's cost to the budget had not been established.

Malaysia's budget deficit is expected to come in at 4.8 per cent of gross domestic product in 2009, far higher than the 3.6 per cent planned, and the rising deficit has started to worry credit ratings agencies such as Fitch Ratings, which last week lowered its outlook on Malaysia to 'stable' from 'positive'.

In an effort to revive the stock market, which has fallen almost 40 per cent this year, Mr Najib said last week he would relax ownership rules that reserve 30 per cent of companies for ethnic Malays.

However, he said on Tuesday a final decision has yet to be made.

'There is no announcement in that regard. We are open. As I said it has to be a pace of liberalisation that we are comfortable with,' he said.

'There is a need for us to be competitive globally. There is need for us to examine how we can overcome the current financial crisis. Gradual liberalisation is something that we will consider.'

Earlier this month, Mr Najib, who will become prime minister in March, shifted almost US$2 billion (S$3.05 billion) in spending to infrastructure and tax cuts from savings in fuel subsidies. -- REUTERS