MALAYSIAN 1987 ECONOMIC GROWTH SEEN ABOVE FORECAST
The Development Bank of Singapore Ltd
(DBS) said Malaysia's real gross domestic product growth (gdp)
in 1987 could be 1.5 to two pct, above a budget target of one
pct.
    It said in a report that because of an economic recovery
and higher foreign exchange reserves, the Malaysian ringgit is
unlikely to face devaluation in the near future.
    The report was presented at a two-day investment conference
organised by the DBS, one of Singapore's four major banks.
    The report said rising commodity prices and the continued
expansion of the manufacturing sector coupled with rigorous
fiscal restraints and a more stable currency are grounds for
cautious optimism about the Malaysian economy.
    It forecast the ringgit will remain stable at between 2.60
and 2.70 Malaysian dlrs to the U.S. Dollar for the rest of the
year.
    But the report said the growth rate of Malaysia's external
debt remains worrying and should be controlled. It said
Malaysia's external debt totals 48 to 49 billion Malaysian dlrs
and its debt service ratio exceeds 20 pct.
 REUTER
