Korea ranked second among five financial crisis hit countries in terms of potential growth, a domestic research centre said yesterday. Malaysia came first.

In a Daewoo Economic Research Institute-conducted survey of investment, consumption, recovery in imports and exports, and other potential growth indicators, Malaysia scored highest with 22 points, topping Korea (20), thailand (17), the Philippines (16) and Indonesia (15).

Ha Jeong-hun, the survey's lead researcher, said, "I conducted this study to determine the growth potential of the crisis-stricken countries in preparation for issuing a 'future preparedness index," adding that he used statistics for 1997 and 1998.

In the "stability index" which was compiled on the basis of sovereign credit ratings. foreign debt level and other measures of economic health, Ha found that Malaysia scored 25 points followed by Korea (21), Thailand (20), the Philippines (19) and Indonesia (8).

Ha's "suffering index" measuring reductions in gross national product per capita, inflation and unemployment, showed that Indonesia, with a score of 15, suffered most among the crisis-hit nations, while Korea and Thailand shred second place with 8 points. Malaysia and the Philippines scored seven, indicating they were largely spared from the worst effects of the crisis.

The Daewoo researcher also found that the Philippines scored a 16 points for top spot in the economic activity index, which measures gross domestic product and economic recovery, while Korea scored 15 points, Malaysia 13, Thailand 11 and Indonesia 5.

In comparisons of each country's growth figures in the first quarter of 1999 against its worst quarter since the crisis, Korea recorded an increase of 11.8 percentage points, followed by Malaysia (10.5), Indonesia (9.1), and the Philippines (3.1)

With all four indices considered, Indonesia was found to be most severely affected by the crisis, while Korea suffered significantly despite signs of rapid recovery, Ha said.