GREAT EASTERN SEES MALAYSIAN ECONOMY GROWING 5 PCT IN 2011

KUALA LUMPUR, March 31 (Bernama) -- Great Eastern Life Assurance (Malaysia)
Bhd expects the country's gross domestic product to grow five per cent this
year.

It also believes that Malaysia is able to withstand external shocks such the
crises in Japan, Northern Africa and Middle East as well as the impact of higher
oil prices.

"Projects under the Economic Transformation Programme (ETP) which will
involve strong infrastructure spending will drive domestic demand and fuel
Malaysia's economic growth," said its chief investment officer, Richard Lin Kwok
Wing.

Speaking at a media briefing here Thursday, he said inflation, forecast to
rise between 2.5 and 3.5 per cent this year due to the removal of subsidies,
would not be alarming.

"We also expect the overnight policy rate to increase by another 50 basis
points but the monetary policy will remain accommodative to ensure growth," he
added.

On the equity market, Lin said that after a spate of turbulence and external
crises in the first quarter, the election factor would hopefully serve as a
catalyst for a better second quarter.

The third and fourth quarters were seen to be robust due to macro factors,
influenced by ETP projects, he said.

Elsewhere, he said: "We've invested a lot in Singapore's market which last
year saw the casino business contributing very strong economic growth. Next,
we're also looking at the Hong Kong and Chinese markets to acquire more growth
in term of returns.

"However, our approach is not only into these countries. In fact, we're
driven by sectors like shipping, banking, port and oil and gas to diversify our
risks and acquire long term growth for our business."