M'SIAN PM NAJIB CALLS FOR IMPROVED EUROPE-ASIA COOPERATION

From Jackson Sawatan

BRUSSELS, Oct 5 (Bernama) -- Malaysian Prime Minister Najib Razak on
Monday joined European and Asian leaders for the Eighth Asia-Europe Meeting
(Asem) Summit here where they discussed issues central to the summit's theme,
"Quality of Life".

The summit got underway at the Royal Palace on Monday afternoon with the
opening ceremony, followed by the first session on the topics of financial and
economic governance where the prime minister called for improved cooperation
and consultation between Europe and Asia.

Improved cooperation, he said, was one way "to ensure we are better prepared
for the future."

He also called for continuous macroeconomic surveillance, balanced domestic
macroeconomic policies as well as regular regional and intra-regional
consultation, saying it would help detect destabilising events and coordinate
policy responses to resolve them.

On Asem, he said, the forum which has been in existence since 1996 needed to
chart a new and exciting vision to realise its founding objectives.

"As a group we need to accept that the balance of the world's economy has
shifted to advancing emerging markets.

"Concurrent with this trend we need to accelerate the reform of multilateral
institutions to reflect this new reality.

"Advancing emerging markets which has benefited significantly from a more
open economic system should shoulder more responsiility in addressing some of
the problems faced by the world today," he said.

He commended the European Union (EU) for taking courageous and unprecedented
steps to protect the euro zone from the severe implication of the economic
downturn and risks arising from sovereign debt problems.

"The EU has also significantly improved supervision and regulation of the
banking and financial services industry, and had implemented an unorthodox
measure by intervening in the financial market to ensure liquidity in the
system," he said.

In Malaysia, he said, the country had adopted market embracing initiatives
rather than taking an insular or protectionist approach in its economic
management.

Najib said that being a highly integrated and open economy, the recent
financial crisis had also impacted Malaysia directly.

In response to the crisis, he said, Malaysia had taken "timely, bold and
forward looking" policies and initiatives, including implementing two fiscal
stimulus packages totalling US$18.1 billion.

Earlier in the day Najib met captains of industry, held a bilateral meeting
with President of the European Council Herman Van Rompuy and attended a media
roundtable with international news organisations based here.

On the sidelines of the summit, he also met Indian Vice-President Prof M.H.
Ansari.

Najib who has been here since Sunday, is accompanied by wife Datin Seri
Rosmah Mansor.
-- BERNAMA