(AFP) The economy is "quite okay" compared to other countries in the region, a visiting International Monetary Fund team said.

IMF executive director Dono Iskandar Djojosubroto made the remark to reporters after meeting deputy Prime Minister Abdullah Ahmad Badawi Thursday, newspapers said today.

Dono Iskandar and four other executive directors of the fund were here on the last leg of a tour which has already taken them to Vietnam, Thailand and Cambodia.

"So far, we agree that Malaysia is quite okay compared to other countries in the region like Indonesia. Things look alright, with inflation very low and the budget is sustainable," Dono Iskandar said.

The delegation has said it is here to listen and not to negotiate with or direct Malaysia on what it should do with its economy.

"In fact, I as IMF executive director for Asia, invited the other executive directors to come to my region to familiarise themselves with this area," said Dono Iskandar, who is from Indonesia.

Routine visit

Delegation leader Wei Benhua said the visit, a routine practice by the Washington-based IMF, is to enhance its understanding of the economic situation and policies of member countries.

"We are not supposed to take a position. We are here to listen to the views of the authorities and bring back (the finding) to Washington. Next time, when we have discussions on policy issues, we'll be in a better position to make an assessment," Wei said.

Malaysia, which is deeply suspicious of IMF prescriptions and refused its help in the 1997/98 Asian economic crisis, last week revised downwards its economic growth forecast for this year to 1.0-2.0 percent because of a greater-than-expected slowdown in the world economy.

Prime Minister Dr Mahathir Mohamad, who is also finance minister, said the September 11 terror attacks on the United States had a "substantial initial impact" on already difficult global economic conditions.

In March, the government cut its growth estimate from 7.0 percent to 5.0-6.0 percent after a strong expansion of 8.3 percent in 2000.