Three Asian countries rated as most stable

Three Asian countries rated as most stable

China, Thailand and Malaysia were rated as the most stable Asian economies out of a field of nine in a DBS Bank report on Saturday.

On the other end of the spectrum, the Philippines and Hong Kong were seen as the most risky.

The Hong Kong economy is expected to contract this quarter because of the impact of the Severe Acute Respiratory Syndrome (SARS) on domestic consumption, the report said.

Singapore, ranked as the third most risky, suffered the largest downgrade by DBS for economic growth this year to 2 per cent from 4 per cent as a result of SARS and the war in Iraq.

DBS, or Development Bank of Singapore, said the war is expected to weigh heavily on the city-state because its small and open economy is heavily reliant on exports, which have been stifled by a drop in global trade.

Public health concerns over SARS may rise to higher unemployment in the services sector, which accounts for 32 per cent of the country's workforce, as people stay away from hotels, restaurants and retail outlets.

Tensions on the Korean peninsula are expected to affect only markets near North Korea, such as China, South Korea and Taiwan, and could ease through diplomacy by the end of the year, the report noted. -- DPA