Indonesia, Malaysia, Philippines, Southeast’s Asia Fiscal Stimulus

Indonesia joins Malaysia and the Philippines in stepping up efforts to shield growth from the global slowdown.
Philippine President Benigno Aquino approved a fiscal stimulus package yesterday, while Malaysian Prime Minister Najib Razak announced in the country’s annual budget last week that he will distribute cash to low-income families, raise wages for civil servants and boost spending on transportation.


“If the global economy is slowing, inflationary pressures will be declining,” Nasution told reporters today. “Many countries may shift their policy focus from maintaining low inflation to supporting economic growth.”

Consumer prices in Southeast’s Asia largest economy rose 4.61 percent in September from a year earlier, after climbing 4.79 percent in August.

The inflation rate may be less than 5 percent this year and next, Perry Warjiyo, Bank Indonesia’s director of economic research, said today.