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If your bike is performing OK and getting you good mileage, the light shouldn't be a big deal (loosebulb or similar). However, the ground signal from the gear switch (gears N, 3, 4, & 5 on your '88) is used in the engine load calculations for spark timing at the ECU... so, if the signal from the switch itself isn't behaving, you may end-up with unintentional timing maps.

Just to add another thought.
 
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