PUTRAJAYA, MALAYSIA: Malaysia is not heading for a recession next year despite many countries taking a hit from the global financial crisis, Deputy Prime Minister Datuk Seri Najib Tun Razak said.

Najib, who is also the Finance Minister, said the Government had enough financial expertise among its various agencies to come up and implement appropriate policy responses towards any possible downturn.

"The finance portfolio has been handed over to me by the Prime Minister at a time when the country's economy is in good shape.

"The economic management is stable and our fundamentals are strong so Malaysia is not in a crisis. God willing, we are not heading towards a recession next year," he said in his speech at the ministry's appreciation ceremony for Prime Minister Datuk Seri Abdullah Ahmad Badawi here yesterday.

Najib also expressed his gratitude to Abdullah for voluntarily handing over the finance portfolio to him as part of the leadership transition plan.

"This is because the Finance Ministry has always been with the Prime Minister. This is a sign that the premier places his consideration for the country above all else," he said.

Najib also pledged his continuous support for Abdullah's national mission and reforms.

In his speech, Abdullah guaranteed that Najib would be a good leader for the ministry and that it would continue to prosper and be able to react well towards any crisis under his tutelage.

"Our economy needs careful attention from time to time," he said.

Meanwhile, Abdullah in his keynote address when opening the two-day International Dispute Resolution Conference in Kuala Lumpur yesterday, said Malaysia had a wealth of experts in Islamic banking and financing to develop the country into a major international hub for arbitration and dispute resolutions.

He said the Arbitration Act, passed in 2005, was a model for many others, while the country's adoption of the New York Convention for Enforcement of Arbitral Awards provided much needed support required for arbitration.

"Our laws do not impose restrictions on foreign arbitrators, mediators or counsel appearing at arbitration," he added.