PUTRAJAYA, MALAYSIA - Malaysia's Prime Minister Najib Razak named a new leaner cabinet on Thursday to carry out economic reforms as the unpopular ruling coalition grapples with a looming economic downturn.

Najib, a 55-year old British-trained economist who was sworn in as the country's sixth premier last week, has pledged to steer the country through its first likely recession since the 1998 Asian financial crisis.

There were 28 ministers appointed, down from the 32 posts in the old cabinet.

'The era of excessive government control and government knows best is over,' Najib told a news conference.

Najib himself is to keep control of the key finance ministry position as he implements a US$16.7 billion ($25.4 billion) package to boost the export-dependent economy which faces its first major recession since the Asian financial crisis.

The new cabinet also saw a big gesture in favour of economic reforms with economist Ahmad Husni Hanadzlah, 56 handed the important job of second finance minister while international trade went to Mustapa Mohamed, 58, an expert who helped steer Malaysia through the 1998 financial crisis.

Despite the changes, there was still a nod to the power bases within the National Front coalition that has ruled this Southeast Asian country for 51 years and from Najib's United Malays National Organisation (UMNO).

Najib appointed Anifah Aman, 55, from resource rich Sabah state as foreign minister. Anifah was once linked in the press with a switch to the opposition.