• 
• 
• 

The joint press statement of the East Asia Summit (EAS) on the global economic and financial crisis issued on Wednesday was self-evident. East Asia is going through a testing time once again. Although it has taken almost six months since December - due to political uncertainties in Thailand - to issue this statement, all intentions and deeds have already manifested themselves.

When the economic tsunami hit Asia in 1997, the region was in ruins. There were huge worries about the future of the region. At the time, its macroeconomic policies and weak financial systems were utterly ill-equipped to deal with the crisis. Then East Asian leaders came together and worked together and everything seemed to improve. They took up painful reforms. Most importantly, they kept their markets free and avoided protectionism.

Last November, the world faced a similar but more severe crisis that impacted on all countries. To restore global confidence and prevent a prolonged economic slump, East Asia must work in tandem with the rest of the world. They came together again in early April for the Pattaya Summit in order to display their common resolve but it was unfortunate that the meeting could not be held. However, at the G-20 Summit in London in early April, the leaders of China, Japan, South Korea, India, Indonesia and Thailand, as the Asean chair, told the two-dozen world leaders about their determination to tackle the global economic and financial crisis together. Furthermore, they would restore confidence, growth and jobs, and promote global trade and investment.

In the past several months, East Asian leaders have responded to the global economic meltdown by reaffirming their determination to ensure the free flow of goods, services and investments. In the statement, they reiterated that they would stand firm against protectionist and distorting measures and refrain from raising new barriers. They called for a prompt, ambitious and balanced conclusion to the WTO Doha Development Agenda. Negotiations, based on progress achieved to date, is necessary and will inject confidence and assist in the global economic recovery. Further regional economic cooperation, trade facilitation and liberalisation will also contribute to making the EAS region a more attractive market and investment destination.

In retrospect, our past experience and common endeavours in 1997 are intuitively telling us what to do. This time, they are acting promptly and agreeing with remedial measures, knowing full well that a further decline in global demand would severely affect their economies. East Asia is ensuring that investment continues to flow into the region. To do that, the global financial system must be healthy. In London, the East Asian leaders together called for a bold and urgent reform of the international financial system, which includes the interests of developing countries. They want to see a more comprehensive, equitable and inclusive system that will enhance partnership between the developed and developing countries.

As we look into the future, both the short- and long-term responses must be discerned. East Asia is determined to strengthen the region's growth potential and expand demand, including through accelerating basic infrastructure improvement, policies and measures for expanding domestic demand, assistance to the private sector, in particular SMEs. In addition, human-resources development as well as advancing regional cooperation efforts, including Asean integration, will help to ameliorate the economic hardship.

The whole world is watching East Asia, which is blessed with rich resources. Towards this end, it is important that the countries in the region make use of various international organisations and regional think-tanks, such as the World Bank, the Asian Development Bank, and the Economic Research Institute of Asean and East Asia. Their research and contribution will help the region to attain sustainable growth and development in years to come.

East Asia is part of a globalised world with interwoven economies. The region cannot survive alone. The statement shows that the region is ready to act together swiftly before it is too late. We have experienced the dire past and won over it. Now our chances of enjoying a better future are facing an economic threat. We must deal head-on with the current crisis.