M'SIAN DPM NAJIB COMES AWAY FROM APEC WITH SUBSTANTIVE RESULTS

LIMA (Peru), Nov 25 (Bernama) -- Malaysian Deputy Prime Minister Mohd Najib Razak's maiden participation at the Asia-Pacific Economic Cooperation (Apec) summit was fruitful as he came away with substantive benefits for Malaysia and the region.

For starters, he got Apec leaders to agree to Kuala Lumpur's call for
economies to coordinate their respective fiscal stimulus packages in the form of
expansionary budget.

The keyword here was spending even in a crisis, to haul the economy out of
recession, which showed that Malaysia's experience in extricating itself out of
the 1997/98 crisis was not lost on Apec even after a decade.

Then Najib told the leaders about Malaysia's proposal for a naval
peacekeeping force to combat piracy in the high seas, especially in the Gulf of
Eden, as a concrete step to combat the menace.

This was a significant step forward in crystallising Apec's call in
encouraging further concerted efforts to fight against piracy as opposed to
verbal statements which only emboldened the pirates.

Wasting no time, Foreign Minister Dr Rais Yatim phoned US Secretary of
State Condoleezza Rice who was also in town for Apec with outgoing US President
George Bush.

The result: in the next two to three weeks, the United Nations Security
Council will discuss Malaysia's proposal for such a force, which will go a long
way towards securing seaborne trade among regional economies.

It can become the maritime version of the land-based peace-keeping
operations which has been implemented by the United Nations all this
time.

Apec accounts for about 55 percent of the world's gross domestic product
(GDP) and 49 percent of global trade.

Its 21 members are Australia, Brunei, Canada, Chile, China, Hong Kong,
Indonesia, Japan, Malaysia, Mexico, New Zealand, Papua New Guinea, Peru, the
Philippines, Singapore, South Korea, Russia, Taiwan, Thailand, the United States
and Vietnam.

What was encouraging at this year's Apec was that it clearly reflected the
high commitment among leaders towards efforts in overcoming the world financial
crisis with the leaders being open and positive.

A statement read out by host and Peruvian President Alan Garcia that Apec
could overcome the crisis in a period of 18 months was, however, quickly
disputed by some leaders.

Canadian Prime Minister Stephen Harper joined his Australian counterpart
Kevin Ruud to pour cold water over the "timeline", especially when many know
that the worse is yet to come.

Najib said if Apec and non-Apec economies initiate a coordinated global
response and members strive towards greater regional economic integration (REI),
perhaps then, the global economy will show signs of recovery.

Under the broad heading of REI, Apec leaders commended the proposed
Asia-Pacific Free Trade Area (FTAAP), but Malaysia expressed reservations saying
it must not dilute the Asean's quest in drawing up free trade agreements with
other economies.

"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," Najib
said.

"If we move too fast, it could exacerbate the imbalance among countries in
the region and possibly dilute the initiatives currently undertaken by Asean
such as negotiating free trade agreements," he said.

"We are not against it, its is just a question of timing and moving at a
pace we are comfortable with," he added.

As for the Doha Round of global trade talks under the World Trade
Organisation, there were the usual pronouncements calling for a successful
conclusion but this time there was a sense of urgency.

International Trade and Industry Minister Muhyiddin Yassin said a quick and
successful conclusion of the Doha Round could cushion the impact of economic
crisis on member economies.

Leaders tasked officials to get the talks going and get it concluded by
next month, but whether this can happen in just weeks after having failed for
years now is left to be seen.

With Singapore hosting next year's summit, it wil be anybody's guess as to
the state of the Asia-Pacific economy.

What is clear is that single-handedly, countries can do little, but by
coming together sincerely along with non-Apec economies there is a good chance
-- as Najib put it -- for the world to be back on track.

With economies slipping into recession like nine pins, only a global
response premised on an expansionary budget can stimulate global and regional
businesses.

Only this will restore confidence in member economies.

"The fiscal stimulus must be calculated on a global basis as this is
necessary to save the world from sliding into recession," he said.
-- BERNAMA