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		Malaysia has to take further steps to improve cooperation among ASEAN member countries so that the grouping can have an early warning system against regional economic crises Statement by Dr Tan Seng Giaw, DAP National Vice-Chairman and MP for Kepong on the need for concerted efforts by ASEAN to prevent economic crises. 3.9.2001.
		. The 1997 economic crisis reveals the weaknesses within individual ASEAN member countries and in the region. Clearly, any crisis in an ASEAN country such as Indonesia or Thailand is perceived as the ASEAN crisis. The economic collapse in Thailand in July, 1997, sparked off the crisis in ASEAN. As there were weaknesses within individual countries, the crisis became magnified. The sea change in Indonesia shows the impact of the crisis. Further globalization and liberalization will make this type of impact more obvious. International currency speculators will continue to prey on countries with economic weaknesses. In Malaysia, the inherent faults such as nepotism, corruption and wastage made the 1997 crisis more serious. However, with our resources we didn't beg the International Monetary Fund, IMF, for help unlike Indonesia and Thailand. We avoided the humiliations imposed by IMF. FURTHER STEPS ASEAN lacks the early warning system and cooperation to ward off economic crises. While Malaysia must rectify her inherent faults, she must also take further steps to work out an early				warning system against economic crises. If each ASEAN member country is stable, then all members benefit. The world will not look askance at the region. Hitherto, Malaysia has proposed the East Asian Economic Caucus, EAEC, and the setting up of Asian Monetary Fund, AMF. It has participated in the ASEAN Regional Forum, ARF. These are attempts to seek better deals for ASEAN and to overcome crises. ASEAN member countries have paid lip service to these proposals. We have yet to see concrete steps to acheive them. The concept of ASEAN PLUS THREE, that is plus China, Japan and South Korea, provides a start. Although countries such as U.S.A. may not be keen on AMF, ASEAN PLUS THREE can push for it. We saw that during the 1997 economic crisis, each country acted for itself. The developed countries saw ASEAN disunited. Meanwhile, ASEAN introduces the Common Effective Preferential Tariffs, CEPT, with a view to establishing the ASEAN Free Trade Area, AFTA. We must make AFTA a success. Also, we hope Malaysia will take the initiative towards an early warning system and AMF. Dr Tan Seng Giaw



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