APEC LEADERS CONFIDENT GLOBAL ECONOMY WILL BEGIN TO RECOVER IN 18 MTHS

From Mikhail Raj Abdullah

LIMA (Peru) Nov 24 (Bernama) -- Asia-Pacific Economic Cooperation
(Apec)leaders wrapped up their annual summit here expressing confidence that
they can overcome the crippling global economic crisis in 18 months'
time.

"The general consensus is that 2009 will be a difficult year for the
global economy but in 2010, we expect some early signs of recovery and hopefully
it will be back on track then," Malaysian Deputy Prime Minister Najib Razak,
said Sunday.

"It is comforting that Apec leaders have shown positive leadership in
overcoming the current global financial crisis by committing to free and open
trade and to complete the Doha Round of global trade talks by December," he told
Malaysian journalists at the end of the two-day summit.

Najib joined world leaders on the final day of discussions at the Ministry
of Defence following which Peruvian President Alan Garcia read out the Lima
Declaration including a separate statement on the global economy.

As Garcia spoke, many economies were reeling from by the crisis with
several major economies already slipping into recession.

His maiden participation at Apec, Najib also joined leaders to don a brown
poncho, which is the customary fashion among leaders to put on an attire of the
host country.

He said leaders were also confident of recovery as members put in more
efforts towards greater regional integration besides resolving to coordinate
efforts in embarking on stimulus packages.

Efforts to strengthen the global financial system, especially the banking
system, plus positive indications of a global initiative to work closely in a
coordinated fashion augur well for recovery, he said.

Elaborating on Apec's efforts to strengthen regional economic integration
(REI), Najib, who is also Finance Minister, said Malaysia supported the proposed
Free Trade Area of the Asia-Pacific (FTAAP) premised on the principle of deeper
REI.

There were some countries which wanted it to be done fast while others were
not. Najib emphasised that it was not a binding arrangement but voluntary which
means each country could have its respective views on the proposal.

However, "our reservation is that it should be undertaken on a step-by-step
approach because if we move it too fast, it could exacerbate the imbalance among
countries in the region and the initiatives currently undertaken by Asean such
as negotiating free trade agreements might be diluted.

"There should be a comprehensive study first to indicate the real benefits
from the FTAAP before we can get all countries to move in that direction," said
Najib.

"We are not against it, its is just a question of timing and moving at a
pace we are comfortable with, so as to ensure maximum benefits for all countries
in the future," he said.

Apec leaders said in the communique entitled "A New Commitment to
Asia-Pacific Development" that there would be challenges in the creation of an
FTAAP although there would likely be economic benefits to the region as a whole.

"We have instructed ministers and officials to conduct further analytical
work on the likely economic impact of an FTAAP," the leaders said.

Next year's summit will be hosted by Singapore.
-- BERNAMA