ASEAN states reassure world of economic reforms

ASEAN states reassure world of economic reforms

By Vincent Lingga

HONG KONG (JP): Thailand, Malaysia, Indonesia and the
Philippines have reassured the world's financial leaders of their
strong commitment to liberalization and continuous structural
reform measures.

"We are committed to the liberalization process because we
have seen and enjoyed the results," Malaysia's Deputy Prime
Minister and Minister of Finance Anwar Ibrahim told the annual
meeting of the International Monetary Fund and World Bank here
yesterday.

Anwar said Malaysia had always been committed to a market-
driven economy and had pursued a consistent program to reduce the
role of the government.

Finance Minister Thanong Bidaya of Thailand, where the
currency crisis started in early July, assured that the Thai
government would address the underlying factors that had
contributed to the currency crisis.

"We pledge that we shall never waver from any and all actions
required to restore stability and confidence," Thanong told the
meeting yesterday.

Thanong took the opportunity to thank countries, including
Indonesia, and multilateral agencies which had worked quickly to
arrange a US$17.2 billion financial bail out for his country.

Indonesia's Minister of Finance Mar'ie Muhammad told the same
forum Monday that his country would continue to maintain the
sound and prudent economic policies that have been demonstrated
over the past 30 years.

"We are in favor of market mechanism but we would like to urge
the IMF to play a more active role in maintaining exchange rate
stability," Mar'ie added.

Mar'ie briefed the finance ministers and central bankers from
the 181 members of the IMF and World Bank on the series of reform
measures Indonesia had taken so far.

He also attached to his prepared speech the English version of
the Indonesian government announcement on Sept. 3 regarding
policies to deal with the impact of rupiah fluctuations.

The measures include a budget retrenchment, rescheduling and
shelving of many big private-sector projects and a more vigorous
reform of the financial sector, including cleaning the banking
sector of insolvent banks.

Philippines Secretary of Finance Roberto de Ocampo told the
meeting yesterday his country saw no alternative to globalization
and integration as it was the only way to jump-start its economy
out of poverty.

"When the markets talk, we will listen," Ocampo assured the
boards of governors of the two Bretton Woods institutions which
are to conclude their annual meeting today.

He asserted that the Philippines economy had been fortified by
the fundamental reforms implemented under an extended IMF
arrangement.

Anwar also highlighted positive impacts of the recent
financial turbulence in Southeast Asia.

"The financial turbulence has provided the impetus for the
formation of a forum to discuss common regional issues as well as
explore remedial policy action," Anwar added.

The forum, he said, provides a basis for the establishment of
a facility to enhance efforts toward economic and financial
stability.

"In the ASEAN region, we have finished a framework to
facilitate effective consultations and discussions," Anwar said
in response to an earlier suggestion from the IMF's managing
Director Michel Camdessus on the importance of peer pressure to
ensure appropriate policies.

But he suggested the IMF special data dissemination standards
be expanded to enhance transparency of the activities of all
market players.

"The IMF should also devise a framework to enable countries to
adapt and cope more effectively with market excesses associated
with destabilizing capital flows," Anwar said.

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