Kuala Lumpur - Malaysia on Tuesday unveiled a massive 60-billion-ringgit (16.12-billion-dollar) economic stimulus package to boost its ailing economy.

In announcing the package, Deputy Prime Minister Najib Razak, who is also the finance minister, said all development plans would be implemented throughout 2009 and
2010.

The fund is the second economic stimulus package by the government after a 7-billion-ringgit package announced in November.

"In view of the deteriorating global economy, the second stimulus package is significantly larger and more comprehensive, encompassing various economic sectors and target groups," Najib said in Parliament.

The money will be spent in five broad areas: fiscal injection, government grants, equity investments, infrastructure projects and tax incentives.

The package, dubbed as the mini-budget, sets aside 2 billion ringgit (537 million dollars) to create 163,000 training and job placement opportunities, as well as to give a tax deductions to employers who hire retrenched workers.

A total of 29 billion ringgit (7.8 billion dollars) has been allocated to assist the private sector, while 19 billion ringgit (5.1 billion dollars) will be spent on capacity building, out of which 10 billion ringgit (2.58 billion dollars) will be set aside for investing in domestic industries.

The package also allocates 5 billion ringgit (1.34 billion dollars) for developmental projects including a budget airline terminal and expansion of the northern Penang airport, among others.

Najib, who is due to take over the role as prime minister later this month, said the government was revising its forecast for the economy to grow 3.5 per cent this year. It now expects the economy to either shrink 1 per cent or grow 1 per cent for 2009.

Malaysia's economy, which relies heavily on foreign trade, has been badly hit by a slump in global demand. The economy grew a dismal 0.1 per cent in the fourth quarter of 2008, bringing full-year growth to 4.6 per cent, short of the targeted 5 per cent. (dpa)