KUALA LUMPUR. Aug 7: Foreign investment in Malaysia shrank 78 per cent in the first quaver Influenced by softer economic conditions in the United States and other industrialised countries, a banker said Friday, reports AFT

Ramon Navaratnam. chief executive officer of Bank Buruh, said that domestic investment fell 21 per cent in the three months to March but this was offset by a 24 per cent Jump in exports which prevented serious damage to the country.

The Malaysian economy is sailing on an even keel and on a steady courses. A recession Is far off for this country, provided the International economy continues to improve and not decline. Navaratnam said In presenting Bank Buruh’s monthly economic outlook.

• Navaratnam said Malaysia earned 37.4 billion Malaysian dollar (14.9 billion US) in exports during the first quarter from mainly Singapore, the United States and Japan, compared, to 302 billion dollar during the previous corresponding period.

Officials said the boom in exports helped Malaysia post an 8.1 per cent growth in the first

quarter, from a year earlier, against the 7.6 percent forecast by Bank Negara, the central bank, for the whole year. ■ The country's Imports, in conL-ast. grew by 8.Z per cent during the period while annual Inflation was brought down to 3.9 per cent — belpw four per cent for the first time In three years.

"With consumption declining, private Investment stowing down and government expenditure being sized down, the momentum for economic growth has to come from continued increase tn exports and drop in imports, Navaratnam said.

Officials said that approved foreign Investments.during the first quarter totalled 1.9 billion dollar down from 8,7 billion dollar during the same quarter of 1992.

dustries for value-added high-technology Industries.

however, said tnal to maintain economic equilibrium, Malaysia had to find ways to continue attracting US Investments, which had fallen by 78 per cent to 184 million dollar in the first quarter from 818 million dollar previously.