| Asean Will Remain Vigilant Against External Challenges, Say Finance Ministers |
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From D.Arul Rajoo
DANANG, Vietnam, April 3 (Bernama) -- Asean is to remain vigilant against external challenges to the region arising from financial markets' turbulence, volatile capital flows and the possibility of a more prolonged and sharper than expected global slowdown.
A draft of the Joint Ministerial Statement of the 12th Asean Finance Ministers Meeting here says the ministers have resolved to maintain sound fiscal and monetary policies.
At the same time, they have showed commitment to continue to implement policies that will sustain domestic demand as an important anchor of growth.
The ministers began their two-day meeting today with a retreat at the World Heritage site in Hoi An, about 30km from here.
The final statement will be issued at the end of the meeting tomorrow.
The ministers will also hold talks with leaders of the World Bank, International Monetary Fund and Asian Development Bank.
In the draft statement, ministers say they were encouraged by the growth in intra-regional trade and investments, which will mitigate the external challenges.
The meeting is taking place amid forecast of lower growth for the region, as well as the possibility of a recession in the US, the world’s largest economy and also one of Asean’s main export destinations.
Despite worries of an impact on the region, the ministers noted the robust economic performance in the region, reflecting sound underlying economic fundamentals, prudent macroeconomic management and ongoing structural reforms.
Both domestic demand and net exports supported the regional GDP (gross domestic product) growth of 6.7 percent in 2007 and most importantly, growth has become increasingly private-sector driven.
"In addition, our strengthened financial system continues to exhibit greater resilience, which in part is reflective of our significant efforts to further deepen the financial markets in the region," the statement says.
The ministers are also committed to liberalise key financial services sectors by 2015 towards achieving the Asean Economic Community.
Following the conclusion of the fourth round of financial services liberalisation negotiations under the Asean Framework Agreement on Services, they also agreed to launch the fifth round which will conclude by 2010.
The Asean Ministers also plan to organise the fifth Asean Investor Seminar in Dubai in October following the previous successful seminars to promote the region as an attractive investment destination.
-- BERNAMA
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