Prime Minister Dr Mahathir Mohamad today stressed that the RM7.3 billion stimulus package was not aimed at attracting votes but a genuine effort to boost the economy.

The premier, who is also the finance minister, said the package would help the government surpass the 4.5 percent economic growth forecast this year.

"The government stresses that this package is not aimed to attract votes for the coming general election as alleged by the opposition, it is a genuine effort by the government to boost the country's economy.

"We are grateful that the economy in the first quarter of this year has increased 4 percent compared with 1.3 percent during the same period last year. The government is confident that with the implementation of this package, it can achieve a higher economic growth rate," he said.

The premier said this at the Dewan Rakyat in response to a question from Dr Yusof Yacob (BN-Sipitang) who wanted to know the impact and the outcome of the stimulus package.

Local shares

The government earlier had cut the official economic growth forecast to 4.5 percent this year from 6-6.5 percent due to the United States-led war against Iraq and the outbreak of the Severe Acute Respiratory Syndrome (Sars).

Mahathir reiterated that the package, which covered a wide range of measures, has helped act as a buffer for different industries.

He said investors were also more confident, citing the Kuala Lumpur Index Composite increase from 636.96 to 683.76 on the day the government announced the package as an example.

Responding to a supplementary question, Mahathir urged the people to invest their money in local shares.

He said this would boost shares which are currently "under-priced".

Mahathir also said the government realised that bumiputera achievements in economic, science and technology were still low.

He was responding to Ahmad Husni Mohd Hanadzlah (BN-Sipitang) who asked whether the premier was worried about the "minimum achievement" of bumiputeras in these fields in view of the challenges of globalisation.