NEED TO REFORM GLOBAL FINANCIAL SECTOR, SAYS PROFESSOR

KUALA LUMPUR, July 18 (Bernama) -- There is a need to reform the global
financial sector in order to prevent a repeat of the current crisis, according
to a professor from the National University of Singapore.

Professor Lim Chin said the current crisis was due to the financial sector
being too unregulated.

"There is a need to reform the financial sector, basically to make sure
there are no more serious activities that blow up risks," he told reporters
after delivering a talk at the Sunway University College.

His talk was titled "The Global Economic Crisis And Its Impact On Emerging
Asia".

However, Lim also said that too many regulations will kill the financial
system.

"When you regulate the financial system, you must also allow it to breathe.
Don't overregulate," he said.

Lim said another factor that needed to be addressed was imbalances in the
macro-economy such as prolonged trade imbalances which could worsen the economic
crisis.

"Right now, there are prolonged trade imbalances between China, Japan,
Germany and the United States. It has been going on too long. When it crashes,
it will hit very badly," he said.

On the impact of the global economic crisis on emerging Asian countries, Lim
said the emerging Asian economies have been hurt despite their minimal exposure
to toxic financial assets and their sound macro-economic structures.

He said that Asian economic recovery will have to await the global economic
recovery.

-- BERNAMA