'FIVE TO SIX PCT GROWTH ESTIMATES REASONABLE AMID UNCERTAINTIES'

KUALA LUMPUR, March 24 (Bernama) -- Several research houses have described
the five to six per cent GDP growth in 2011 projected by Bank Negara Malaysia
(BNM), Malaysia's central bank, as reasonable.

"We are not surprised by the growth range given the uncertainties on the
international front especially with a series of black swan of late," said MIDF
Research in its Equity Beat publication Thursday.

It said that with the economy reaching a "trough" in the first quarter with
an estimated growth of 3.8 per cent and gaining momentum thereafter with faster
acceleration in the second half, boosted by stronger private expenditure and
positive terms-of-trade, this year's expansion was forecast at 5.3 per cent.

AmResearch said the central bank's projection looked reasonable and within
achievement given the volatile oil prices and uncertain economic conditions
elsehere.

"We expect the speedier implementation of the Economic Transformation
Programme and the 10th Malaysia Plan in the second half of this year to drive
trend-wise growth of six per cent and this should help meet our forecast of 5.5
per cent for 2011," it said.

The research house, in its Economic Update, expected the central bank to
keep the Overnight Policy Rate (OPR) steady at 2.75 per cent, at least until
September, and did not out a 25 per cent basis point increase in the fourth
quarter.

MIDF Research, however, said that further normalisation of the monetary
policy remained on high note due to ample liquidity and rising inflation
pressure.

"We maintain OPR will be raised to 50 basis points to 3.25 per cent in
2011," it said.