Morgan Stanley managers felt that a wide spectrum of well-managed companies offering investment opportunities was a reason for their favouring India in the coming year. According to a release of the firm here, the other favourites for 1999 are Hong Kong, Singapore and Thailand.

He was optimistic about Singapore, stating that it is the region's easiest macro-economic `call' and could be the best restructuring story. ``Singapore is the only economy in the region that has used the regional crisis to accelerate opening-up reforms,'' he said.

On Hong Kong, the managers felt that although the economy may stop contracting towards the end of 1999 and rebound in 2000, sustained economic recovery depends on structural reforms that will restore the city'scompetitiveness. Economist Andy Xie was confident that China will maintain a relatively high growth rate of 15 per cent for state sector investment in 1999, which is sufficient to maintain a GDP growth rate at the same levels as 1998.