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Prime Minister Datuk Seri Najib Razak announces several measures to support the economy and markets after attending the weekly Economic Council meeting in Putrajaya. Pix by FARIZ ISWADI ISMAIL.

PUTRAJAYA: Prime Minister Datuk Seri Najib Razak today announced several new measures to support the economy amidst a more challenging environment globally.

At a press conference after the weekly Economic Council meeting in Putrajaya, he reiterated that the government will not impose capital controls, but would instead execute short and medium term measures to strengthen the economy.

Najib said Malaysia's GDP achieved 5.3 per cent growth in the first half this year and this is expected to expand in 2016.

Among the measures announced were:

• Government will reactivate ValueCap, set up in 2002 to support undervalued shares, with a fund size of RM20 billion

• Government-linked companies and local companies urged to use their profits gained from investments abroad to invest in high multiplier projects at home

• More shops offering items at reasonable prices like Kedai 1Malaysia will be established to help the rakyat

• Setting up 16 more 1Malaysia clinics this year and 33 next year

• Malaysian students’ scholarships will continue despite weak ringgit

• RM80 million allocated for health tourism promotion campaign in selected markets including China and India

Najib said the Government remains committed to implement fiscal consolidation to achieve lower fiscal deficit target of 3.2 per cent of the gross domestic product (GDP) growth.

He said Malaysia's economy is on track to achieve its GDP growth of between 4.5pc and 5.5pc this year.

Najib said additional measures will be announced in the 2016 Budget.

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