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Slowing demand from China and a political crisis swirling around
Najib have also shaken investors in Southeast Asia's
third-largest economy in recent months, pushing the ringgit down
nearly 19 percent against the U.S. dollar so far this year.
Najib is expected to announce the new measures at around 11:30
pm (0330 GMT) after a weekly meeting of the economic council on
Monday, officials at the Prime Minister's office said on
Saturday, without giving details.
Last month, he set up a special economic committee to propose
immediate and medium-term measures to strengthen the economy and
to restore investor confidence.
Malaysia has been gripped by political tensions which escalated
in early July after a report that investigators looking into
debt-laden state investment fund 1MDB had found that close to
$700 million had been deposited in an account held by Prime
Minister Najib Razak.
Najib, who also chairs 1MDB, has denied any wrongdoing, but the
scandal has not died and has weighed on the economy.
Both Najib and Malaysia's central bank governor have pledged not
to impose capital controls.
Najib has maintained that Malaysia's current economic situation
was stronger than during the 1997-98 Asian financial crisis.
Massive outflows of capital during that crisis forced Malaysia
to peg the ringgit at 3.8 to the dollar, which was retained that
2005.
Fitch Ratings said last week that Malaysia's deteriorating
currency position - reflected in the ringgit's sharp
depreciation, falling foreign exchange reserves and shrinking
current account surplus - could force it restore a negative
outlook on the country's credit rating.
(Reporting by Yantoultra Ngui; Writing by Praveen Menon; Editing
by Kim Coghill)
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