ASEAN ECONOMIC MINISTERS FINE TUNE FINANCIAL MECHANISM

BY ARUL RAJOO

HUA HIN, Oct 22 (Bernama) -- Asean Economic Ministers on Thursday began
deliberation on the current regional economic situation and to fine-tune several
financial and trade mechanisms before their leaders meet at the 15th Asean
Summit here beginning Friday.

International Trade and Industry Minister Mustapa Mohamed is leading the
Malaysian delegation at the Second Asean Economic Community Council chaired
by Thai Commerce Minister Pornthiva Nakasai.

Vitavas Srivihok, Director-General of the Department of Asean Affairs, said
a number of concrete outcomes are expected after the Summit, including the
US$120 billion Chiang Mai Initiative Multilateralisation to be launched
early next year.

He said that the fund, with contributions from Asean member countries, as
well as from China, Japan and South Korea, is expected to contribute to regional
economic recovery efforts and financial liquidity.

The ministers are also discussing the development of the Asean +3 Emergency
Rice Reserve with the aim of early commencement under a permanent office.

During the Summit, 16 regional leaders, including Malaysian Prime Minister
Najib Razak, will also follow up on the progress of China's initiatives to
promote infrastructure development through the US$10 billion China-Asean Fund on
Investment Cooperation and the US$15 billion Commercial Credit.

Also on the agenda is cooperation with Japan on global warming, efficient
use of energy, closing the development gap among Asean member countries and
cooperation with Korea on the latter's "Low Carbon Green Growth" initiative for
dealing with climate change.

The Economic ministers are also discussing free trade agreements between the
region and its dialogue partners, including cooperation with India towards
achieving US$70 billion trade within two years.

Asean, with a population of about 580 million people, has a combined Gross
Domestic Product of US$1.5 trillion in 2008 and total trade of US$1.7 trillion.

Information, Communication and Culture Minister Dr Rais Yatim will attend
the Second Asean Socio-Cultural Community Council meeting, which among others,
would dicuss the promotion and protection of the rights of women and children,
education and climate change.

Foreign Minister Anifah Aman also has a busy schedule on Thursday, where he
joins his Asean colleagues to meet the high-level legal experts group on the
Asean Charter and signs the Agreement on Privileges and Immunities of the
grouping.

Thailand has mobilised 36,000 security personnel to ensure a smooth summit
and prevent a repeat of last April's debacle in Pattaya when anti-government
protesters stormed the East Asian Summit and forced its cancellation.

According to the "Nation" daily, the Thai government is spending 296 million
bahts on security, including 160 million bahts on 20 bullet proof Range Rovers
while the Foreign Ministry is forking out 439 million bahts to organise the
Summit, including 16.5 million bahts on a gala dinner. (US$1=33.45 bahts)
-- BERNAMA