MALAYSIA,CHINA AND INDIA TO BE NEXT GROWTH ENGINE FOR WORLD ECONOMIC DEVELOPMENT

KUALA LUMPUR, Nov 16 (Bernama) -- Asian tigers like Malaysia, China and
India will be the next growth engine for world economic development, when
the recession ends, said Principal Global Investors' chief global economist, Dr
Robert F. Baur.

He said the emerging markets, as one third of the global economy, are
playing a bigger part in it.

"This is a syncronised global economy with not only growth in Malaysia but
also posting double-digit growth in South Korea and Singapore," he told a media
briefing on, "Whatever Happened to the Apocalypse?", organised by CIMB Principal
Asset Management, here Monday.

He also stated that industrialisation and urbanisation would continue in the
emerging markets and going forward, there would also be continuous development
in Asian urban areas.

He said the global recession is likely to end as the housing and auto
sectors in the United States are showing some improvement, adding to the
country's economic growth.

"We are hoping that both sectors will continue adding to growth into the
fourth quarter," he added.

He pointed out that the deterioration of unemployment in the United States
is over and job losses would be moderate.

He said countries like Canada, Japan, China and Australia are
showing jobs improvement.

When asked how the Doha Round, when concluded, would contribute to the
growth of the United States, Baur said : "It would be very helpful. I think free
trade theoritically increases productivity as countries can concentrate on
producing what they do best in a relative sense.

"I hope the Doha Round will get ramped up again. We have had several
attempts to get it going," he said.

Baur said while economic recovery is underway, the risks remain.

According to him, businesses finds no incentives to expand when taxes are
raised along with the unintended consequences of government policy.

"Can this recovery be sustainable? It is sustainable because consumer
spending is improving. By the fourth quarter 2010, consumer confidence will
return and move into 2011," he said.

Baur said both savings and spending can go up together in order to achieve
sustainable growth.

-- BERNAMA