EAST ASIAN COUNTRIES MUST QUICKLY RESPOND TO GLOBAL CRISIS, SAYS M'SIAN PM

KUALA LUMPUR, Dec 4 (Bernama) -- Malaysia believes East Asian countries must
quickly respond to the global crisis plaguing the world, Prime Minister Abdullah
Ahmad Badawi said Thursday.

He said the Asean Plus Three process must be taken to a higher level in an
effort to get out of the global economic crisis.

"If we in East Asia are to be relevant and beneficial to our
constituencies,
we must raise our game by setting new goals and take massive collective
actions," he said .

"East Asia must make a difference and Asean must be the pivote on which
regionl cooperation must hinge," he said in his keynote address at the 6th East
Asian Congress.

Abdullah said the ramifications of the global economic crisis were much
larger than many economies had anticipated while governments too should be
blamed for being complacent with the passage of time.

"We thought that if we keep our houses in order we could avoid any crisis.
It was taken for granted that the world's trade lanes would remain open and that
protectionism would not be a factor.

"It was also assumed that the mammoth budget and trade deficits on one side
of the pacific and over savings on the other would correct themselves.

"It was thought that increasingly poor income distribution would not have
any impact on world demand," he added.

Abdullah said some countries were also complacent in their relations with
each other and instead of building friendship and cohesion, they allowed narrow
national interests to strain ties with their neighbours.

The Prime Minister said East Asia's growing weight and importance in world
affairs meant it should articulate an agenda, one that better corresponds to its
own priorities and requirements.

"East Asia's path should be holistic, with decisive measures in the
economic, social and political realms," he said.

In the economic realm, Abdullah said East Asia needs to continue
strengthening and liberalising the Chiang Mai swap arrangement, with policy
harmonisation being crucial for both regional swap arrangement and bond market
development.

"We should not only increase liquidity but also make it easier to
conduct all types of asset transactions. We should also liberalise our service
sectors more extensively to enable greater participation, investment, employment
and integration," he said.

Abdullah also wants the East Asia region to be more active in the social
realm and to have strong and resilient people to weather the current economic
and financial meltdown successfully.

He wants East Asian states to increase their capacity to pass on the
skills,
knowledge and abilities to new entrants to the labour market and displaced
workers.

"We need to foster entrepreneurial spirit through fiscal and financial
means. We must recognise poverty for what it is, the achilles-heel of our
countries and the region," he said.

On the political front, Abdullah said while the economic turmoil 10 years
ago had brought East Asian nations together, this comradeship has somewhat
faded a little in recent years.

"The crisis we are facing now should help bring us closer together again
and
renew solidarity. We should dispel our suspicions and rediscover our onenness
and common purpose, he said.

"We should prevent any episode of history, issues of sovereignty and
disputes over territories from intruding into our spirit of cooperation and
undermining it," he said.

In this regard, he said, Asean governments have been pragmatic and
wise.

"They had serious differences over the proposed Asean Charter but they
understood the need for a consensus over this legal document," he said.

"They were prepared to give-and-take in the interests of reaching an
agreement acceptable to all members," he said.

The charter is to be enforced soon after having been ratified by all 10
Asean members, he said, adding that the grouping's members were now firmly
focused on their future.
-- BERNAMA