Early warning system needed

Early warning system needed

KUALA LUMPUR (Reuters): APEC should set up an early warning system for its economies to avoid sudden shocks like those that have torn through Asia over the last year, Australian Foreign Minister Alexander Downer said yesterday.

Downer, on a three-day visit to Malaysia, said the 18-member Asia-Pacific Economic Cooperation (APEC) forum could do more to address the Asian economic crisis.

Speaking to reporters after a meeting with Malaysian Prime Minister Mahathir Mohamad, Downer said: "We believe...the APEC countries can get together and develop something of a system to look at the way their financial sectors are working, make sure where problems are beginning to develop, they are able to help each other, rectify these problems...so in the years ahead, APEC economies don't end up with the sudden shocks that we have seen over the last year."

Malaysia hosts the annual APEC summit in November.

Downer, who also met Deputy Prime Minister Anwar Ibrahim, said Canberra remained committed to Asia despite the economic difficulties facing the region.