MALAYSIA CAN ACHIEVE OVER SIX PCT GROWTH THIS YEAR, SAYS OSK CEO

KUALA LUMPUR, Jan 10 (Bernama) -- Malaysia has the potential to achieve over
six per cent growth this year, said OSK-UOB Unit Trust Management Bhd chief
executive officer Ho Seng Yee.

"Once the projects under the New Economic Model (NEM) and the Economic
Transformation Programme (ETP) are successfully implemented and the timeline
met, there is a high possibility of recording over six per cent growth," he told
reporters after the launch of OSK-UOB Asia Financials Fund here Monday.

Malaysia is forecast to register below six per cent growth in 2010.

Under the NEM, Malaysia needs six per cent annual growth in order to achieve
high-income economy by 2020.

Ho said Malaysia economy has done well and the market would continue to
perform because of ample liquidity, entry of foreign investors and the projects
the government proposed to implement.

He said the ETP would spur Malaysia's economy to the next level with the
infrastructure, oil and gas, plantation and banking sectors driving the growth.

"On average, we expect earnings per share to rise to about 13-15 per cent
this year and will easily boost the FTSE Bursa Malaysia KLCI up to 1,700," he
said.

Ho said the overnight policy rate in the first quarter of this year was
expected to remain unchanged at 2.75 per cent.

He said OSK expected another 25-50 basis points increase in the OPR this
year, which indicated Malaysia's economy was expected to perform well with small
increase in inflation.

-- BERNAMA