(AFP) - Malaysia's captains of industry and bankers are generally optimistic about the outlook for the domestic economy but are seeking measures to spur consumption, a survey showed today.

The Star daily said its CEO Outlook 2002 survey highlighted the importance for Malaysia to be internationally competitive and to continue promoting a conducive environment for foreign direct investment.

More than 40 chief executives surveyed felt measures were already in place for Malaysia to recover once the global economy improved.

"All the initiatives to revive the economy, strengthened by political stability, will boost investors' confidence and will result in an improvement in GDP (gross domestic product) growth for 2002," Nestle Malaysia managing director Jose Lopez was quoted as saying.

Bankers said the banking system remained strong despite rising non-performing loans (NPLs).

Public Bank president and chief executive Teh Hong Piow said the country's economy was "manageable" but there was an urgent need to generate more growth from domestic sources.

"The outlook for 2002 is more encouraging than that of 2001," he said.

Corporate restructuring

HSBC Bank Malaysia chief executive Dyfrig John voiced concerns the slowing economy would limit loan growth and lead to higher NPLs, noting that NPLs had surged to 8.1 percent from 6.3 percent in December 2000.

But he said the corporate restructuring currently underway would improve market valuations.

Proton chief executive Tengku Mahaleel Tengku Ariff said the national carmaker had shifted its outlook to Southeast Asia to balance the downturn in the United States and Europe after the Sept 11 terror attacks on New York and Washington.

He anticipated strong demand for lower priced cars between RM30,000 and RM40,000 but sales of vehicles priced above RM100,000 ringgit could be hurt if the global economy did not recover.

The survey found property developers and hoteliers saw an uncertain outlook amid an oversupply in the industry.

But heads of telecommunications and mobile phone companies forecast double-digit growth despite the downturn, while plantation bosses predicted a recovery in palm oil prices.

The government last month revised downwards its 2001 economy growth forecast to 1.0-2.0 percent because of the "greater-than-expected" slowdown in the world economy.