Malaysia PM sees stimulus to end 2010

KUALA LUMPUR, Sept 29 - Malaysia is to keep its economic pump priming measures which have seen an extra 1.0 billion Malaysian ringgit a month in spending until the end of 2010 Prime Minister Najib Razak said on Tuesday.

Najib said that the government was "mindful" of the need to rein in spending and would consider targetting subsidies to poorer people as it readied the 2010 budget, due to be presented on Oct. 23.

"There might be small reduction in operating expenditure," Najib told a press conference after a meeting about the economy with the country's central bank.

The government forecasts that the budget deficit will be 7.6 percent of gross domestic product this year and the International Monetary Fund said recently it expects the deficit to be 7.1 percent of GDP in 2010.

- Malaysia is to keep its economic pump priming measures which have seen an extra 1.0 billion Malaysian ringgit a month in spending until the end of 2010 Prime Minister Najib Razak said on Tuesday.

Najib said that the government was "mindful" of the need to rein in spending and would consider targetting subsidies to poorer people as it readied the 2010 budget, due to be presented on Oct. 23.

"There might be small reduction in operating expenditure," Najib told a press conference after a meeting about the economy with the country's central bank.

The government forecasts that the budget deficit will be 7.6 percent of gross domestic product this year and the International Monetary Fund said recently it expects the deficit to be 7.1 percent of GDP in 2010.

(Reporting by Royce Cheah; Editing by David Chance