MALAYSIA'S STRONG ECONOMIC PERFORMANCE.

Among the developing economies of Asia, Malaysia is in a relatively strong position. It has oil. And it has technology.

These two sectors are vital to the economy because on the one hand, the increase in oil prices has provided a windfall, and on the other hand as world demand for electronics slows somewhat, the windfall from oil can keep Malaysia moving ahead.

The Malaysian Government forecast a 7 percent increase in the country's GDP for the year, and still expects to make it, according to third quarter reports from Bank Negara Malaysia (BNM), the country's central bank. The annualized rate of growth in the third quarter was 6.8 percent.

The only reason there were any questions was the slowing of technology Malaysia's technology sector compares favorably with other tech savvy Asian nations. The slowing was indicated by a somewhat lower rate of growth in gross imports from 32.1 percent in the second quarter to 29.9 percent in the third quarter. The rationale for the worry was that the technology sector was not importing supplies and components, reflecting a decline in manufacturer expectations of demand for technology products. BNM's third quarter report on consumer sentiment, though, shows strong spending plans starting with durables. Private consumption grew "strongly" at 10.8 percent. Private consumption is expected to end 2004 having grown 7.8 percent, and is likely to grow 7.5 percent in 2005, according to the Malaysian Institute of Economic Research (MIER), the organization that actually does the consumer surveys that yield the country's Consumer Sentiment Index. MEIR's latest publically available survey (July 2004) shows Malaysians in the market for houses and passenger cars.

Spending plans for washing machines and TVs remain steady. And spending plans for furniture, refrigerators, and "cookers" are "looking up". Disposable income was enhanced by a bonus for public employees granted by the new Government. YOUNG CONSUMERS AND A FAIRLY STABLE JOB MARKET BODE WELL

The population growth rate for Malaysia is above the regional average, due in part to a birth rate of 26 per thousand inhabitants, which is above the average of 22 per thousand for Southeast Asia. Job creation has kept up with growth of the labor force in recent years, and it is likely that the situation will improve furhter in 2005.

Unemployment is running about 3.6 percent, and this continues to buoy consumer confidence. Malaysias population reached 26 million people mid-2004, which amounted to just under 5 percent of Southeast Asias 548-million inhabitants. According to data released by the Population Reference Bureau (PRB), Malaysias population will reach 36 million 2025. Also, according to that source, Malaysia is going to have a population of 47- million people in 2050. The PRB revealed that a substantial 62 percent of Malaysias population lived in urban areas during 2004, and that the countrys population density is a comparatively moderate 201 people per square mile. Another source of demographic data, the CIAs World Factbook, indicates that 33 percent of Malaysias population was birth14 years old in 2004, while 62 percent was 1564 years old, and 5 percent of the populace was 65 years of age and over. CIA statistics revealed that the countrys population growth rate was 1.83 percent in 2004 and the net migration rate was zero. According to the United Nations Population Division, in the year 2050, 20 percent of Malaysias population will be birth14 years old, while 59 percent will be aged 1559, and 21 percent of the populace will be 60 years of age and over.