I found this article from Straits Times (02/03/2009) quite interesting. So I would like to share with you guys :D

HUA HIN (THAILAND): - Prime Minister Lee Hsien Loong yesterday joined Asean leaders in reaffirming the need to ensure a free flow of goods, services and investments around the world.

He called protectionism 'counterproductive' to efforts to revive economies in the midst of the current global downturn, urging instead speedier regional integration of markets to promote trade and thus stimulate economic growth.

Asean is 'heading in the right direction' to reach its 2015 goal of realising a single market, he said, adding: 'But we can always go faster.'

Mr Lee spoke to Singapore media yesterday at the close of the two-day Asean Summit in the Thai resort town of Hua Hin. He returned to Singapore last night.

Protectionism and the need for a coordinated response to financial emergencies were key issues at the summit, held against a backdrop of tumbling exports and populist pressures on governments to look after domestic producers first.

In a collective statement, leaders of the 10 Asean countries pledged decisive measures to restore market confidence and ensure the stability of their financial systems.

They welcomed a proposal by finance ministers of Asean, China, Japan and South Korea to expand a currency swap fund, the Chiang Mai Initiative, to bolster regional currencies.

PM Lee reiterated Singapore's support for the fund, saying it could 'contribute to the stability of the region'.

Singapore is 'not likely to resort to loans or swap schemes like this', but it should participate to help head off situations where neighbouring countries run into currency crises, he said.

Thailand, like Singapore, also took a strong anti-protectionist stance. 'If we start playing by the rules of protectionism, everybody will go down, it doesn't help anybody in the end,' said Thai PM Abhisit Vejjajiva.

Malaysian Premier Abdullah Badawi too stressed his commitment to open markets at a separate press conference.

Singapore's PM Lee noted, however, that there would be difficulties linked to the 'practical implementation' of a pro-trade stance, as some measures adopted by some countries to stimulate their economies could be deemed protectionist.

Asean would have to deal with the problems as they come up. This would not be easy as 'the ground pressures are there in many of the countries' to save local manufacturers. 'The temptation is to say, let's keep it all at home and look after ourselves first.'

The fact that Asean has taken a strong stand against protectionism, Mr Lee stressed, 'doesn't mean that we've solved the problem, but it means we know what we need to do'.

Asean signed a free trade agreement with Australia and New Zealand on Friday, in what some saw as a signal to other countries to keep their markets open too.

In an interview with the Bangkok Post on Friday, PM Lee said he hoped the new US administration would have the wisdom to resist protectionist sentiments, particularly in the US Congress.

America's open economy is 'the reason why the whole exercise of globalisation, of trade and prosperity, has been able to happen'.

'If America turns inwards, it is going to do the world a lot of harm, and do them a lot of harm,' he added.

There is no better time than now for Asean 'to engage the US and to give a fresh impetus to the relationship', Mr Lee told other Asean leaders during a retreat yesterday morning.

Mrs Hillary Clinton's choice of Asia for her first trip as US Secretary of State shows 'there is a new US administration which understands the importance of Asia, and particularly China', said Mr Lee.

Please pay attention to the 2 sentences I highlighted.

PM Lee said that America's open economy is 'the reason why the whole exercise of globalisation, of trade and prosperity, has been able to happen'.

Why is it so? Is open economy market economy? By speeding up Asean goal of single market, does that mean that Singapore's economy will change from a mixed economy to an market economy?

Discuss it by posting comments. It's okay if you make mistakes, we're all learning. :D

I found this article from Straits Times (02/03/2009) quite interesting. So I would like to share with you guys :D

HUA HIN (THAILAND): - Prime Minister Lee Hsien Loong yesterday joined Asean leaders in reaffirming the need to ensure a free flow of goods, services and investments around the world.

He called protectionism 'counterproductive' to efforts to revive economies in the midst of the current global downturn, urging instead speedier regional integration of markets to promote trade and thus stimulate economic growth.

Asean is 'heading in the right direction' to reach its 2015 goal of realising a single market, he said, adding: 'But we can always go faster.'

Mr Lee spoke to Singapore media yesterday at the close of the two-day Asean Summit in the Thai resort town of Hua Hin. He returned to Singapore last night.

Protectionism and the need for a coordinated response to financial emergencies were key issues at the summit, held against a backdrop of tumbling exports and populist pressures on governments to look after domestic producers first.

In a collective statement, leaders of the 10 Asean countries pledged decisive measures to restore market confidence and ensure the stability of their financial systems.

They welcomed a proposal by finance ministers of Asean, China, Japan and South Korea to expand a currency swap fund, the Chiang Mai Initiative, to bolster regional currencies.

PM Lee reiterated Singapore's support for the fund, saying it could 'contribute to the stability of the region'.

Singapore is 'not likely to resort to loans or swap schemes like this', but it should participate to help head off situations where neighbouring countries run into currency crises, he said.

Thailand, like Singapore, also took a strong anti-protectionist stance. 'If we start playing by the rules of protectionism, everybody will go down, it doesn't help anybody in the end,' said Thai PM Abhisit Vejjajiva.

Malaysian Premier Abdullah Badawi too stressed his commitment to open markets at a separate press conference.

Singapore's PM Lee noted, however, that there would be difficulties linked to the 'practical implementation' of a pro-trade stance, as some measures adopted by some countries to stimulate their economies could be deemed protectionist.

Asean would have to deal with the problems as they come up. This would not be easy as 'the ground pressures are there in many of the countries' to save local manufacturers. 'The temptation is to say, let's keep it all at home and look after ourselves first.'

The fact that Asean has taken a strong stand against protectionism, Mr Lee stressed, 'doesn't mean that we've solved the problem, but it means we know what we need to do'.

Asean signed a free trade agreement with Australia and New Zealand on Friday, in what some saw as a signal to other countries to keep their markets open too.

In an interview with the Bangkok Post on Friday, PM Lee said he hoped the new US administration would have the wisdom to resist protectionist sentiments, particularly in the US Congress.

America's open economy is 'the reason why the whole exercise of globalisation, of trade and prosperity, has been able to happen'.

'If America turns inwards, it is going to do the world a lot of harm, and do them a lot of harm,' he added.

There is no better time than now for Asean 'to engage the US and to give a fresh impetus to the relationship', Mr Lee told other Asean leaders during a retreat yesterday morning.

Mrs Hillary Clinton's choice of Asia for her first trip as US Secretary of State shows 'there is a new US administration which understands the importance of Asia, and particularly China', said Mr Lee.

Please pay attention to the 2 sentences I highlighted.

PM Lee said that America's open economy is 'the reason why the whole exercise of globalisation, of trade and prosperity, has been able to happen'.

Why is it so? Is open economy market economy? By speeding up Asean goal of single market, does that mean that Singapore's economy will change from a mixed economy to an market economy?

Discuss it by posting comments. It's okay if you make mistakes, we're all learning. :D