The Malaysian government will not impose any capital control measures in reaction to the latest developments in the stock market, a senior finance official said Wednesday.

Second Finance Minister Nor Mohamed Yakcop said he is not worried about the fall in the local stock market as the country's economic fundamentals have not changed.

"Our market has corrected somewhat but the fundamentals are strong. And I am confident about the Malaysian economy and stock market," Nor Mohamed told reporters in the administrative center of Putrajaya.

He also brushed aside worries of a liquidity crisis caused by the selling in the stock market.

"I don't think there will be a liquidity crisis. Certainly in our case there is no liquidity crisis," Nor Mohamed was quoted as saying by the national news agency Bernama.

Malaysia stock market fell sharply on Tuesday with the market barometer Kuala Lumpur Composite Index down 2.81 percent. The index further declined 40.63 points to 1196.45 on Wednesday.

Latest figures released by the Department of Statistics and the central bank showed the Malaysian economy grew by 5.9 percent in the year 2006, surpassing the initial governmental estimate of 5.8 percent.

Source: Xinhua