Deputy Prime Minister Najib Razak said the government may have to cut its growth target of 5.5 to 5.7 percent this year "if there is more bad news out of the U.S. and if the current situation leads to a significant downturn."
"Malaysians need to remain united and cohesive as the country prepares to face the global financial economic challenge," Najib, who is also finance minister, told reporters.
The National Front coalition, which has led Malaysia since independence in 1957, faces the threat of being ousted by opposition leader Anwar Ibrahim, who has moved to engineer defections from the ruling party.
"Now is not the time for politicking, speculation and political game by anybody. The government will act responsibly and swiftly to address any eventuality to safeguard the interest of the people and the nation," Najib said.