ASEAN economies to grow 7.9% in 1995

ASEAN economies to grow 7.9% in 1995

KUALA LUMPUR (AFP): Growth in the ASEAN region is expected to
accelerate by 7.9 percent this year, led by Malaysia and
Singapore, amid improvements in the global economy and capital
inflows, Malaysia's central bank said.

Driven by robust growth in exports and domestic demand, the
Association of Southeast Asian Nations (ASEAN) as a group grew
more rapidly by 7.6 percent last year from 7.0 percent in 1993,
the central Bank Negara's 1994 annual report released late
Wednesday showed.

Singapore, sustaining its 1993's performance at 10.1 percent
last year led growth in the region, followed by Malaysia with 8.7
percent, Thailand 8.5 percent, Indonesia 6.9 percent (recently
Indonesian Central Bureau of Statistics announced that Indonesia
recorded an economic growth rate of 7.34 percent last year) and
the Philippines 4.3 percent.

Singapore and Malaysia, the region's economic powerhouses, are
expected to record the highest growth of 8.9 percent each this
year, trailed by Thailand with a projected rate of 8.5 percent,
Indonesia 7.6 percent and Philippines six percent.

Data for oil-rich Brunei, the sixth member in the grouping, is
not included.

The region's buoyant economic expansion, however, was shadowed
by an increase in price pressures.

Inflation, however, was expected to moderate to 6.1 percent
this year, after rising to 6.8 percent last year from 6.2 percent
in 1993.

The region's combined current account deficit also improved to
US$7.4 billion last year from $9.7 billion in 1993.

In terms of trade, ASEAN's aggregate exports surged by 21
percent last year from 14 percent the year before, due to higher
demand from industrial economies, especially the United States,
and greater intra-regional businesses.

By individual countries, Singapore recorded a significantly
larger current account surplus last year of $12 billion from $5.2
billion in 1993.

The external accounts of the other ASEAN nations, including
Malaysia, remained in deficit, which in most cases, had widened
except in the Philippines where there was a slight improvement.

Malaysia's current account deficit almost doubled to 11.6
billion ringgit ($4.64 billion) last year from 6.3 billion
ringgit in 1993.

"Generally, economic policies in the region will continue to
be directed at maintaining growth with price stability, with some
having specific measures to prevent overheating and manage excess
liquidity," a central bank official said.

Malaysia's Bank Negara governor Ahmad Mohd. Don said on
Wednesday that inflow of speculative funds would be curbed if
they posed a threat to stability.