Asia Pulse- Asean Disappointed To B

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Subject: Asia Pulse- Asean Disappointed To Be Shut Out Of G 20

Asean Disappointed To Be Shut Out Of G 20
WASHINGTON, Sept 28 Asia Pulse - The Southeast Asian group of nations or
ASEAN have expressed their disappointment with the Group of Seven (G-7)
industrialised countries for failing to include at least one ASEAN
member-country in the newly-formed G-20.
Malaysia's Second Finance Minister, Mustapa Mohamed, in briefing Malaysian
journalists here about the Japan-ASEAN finance ministers meeting Monday,
said members of the 10-member grouping expressed their concern to Japan that
not a single ASEAN country was included in the new grouping which was
created on Saturday.

"We were the worst affected in the world (during the financial crisis), but
not one ASEAN country or ASEAN as a group was included in the new forum,"
said Mustapa following a 45-minute meeting between the ASEAN ministers and
Japanese Finance Minister Kiichi Miyazawa.

Miyazawa, who told ASEAN ministers that membership of G-20 was not firm,
promised to take up the issue with G-7, and ASEAN ministers expressed their
gratitude, Mustapa added.

ASEAN is made up of Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar,
the Philippines, Singapore, Thailand and Vietnam. The Laotian finance
minister was not present at the meeting.

The G-20 is a mix of the seven wealthiest nations in G7, 11 emerging market
economies and two institutional representatives that play a significant role
in the world economy.

The economies include Argentina, Australia, Brazil, China, India, Mexico,
Russia, Saudi Arabia, South Africa, South Korea and Turkey, while the
institutional representatives come from the European Union (EU) and
International Monetary Fund/World Bank.

The new forum, which replaces the G-22 and G-33, is expected to have a wide
mandate to discuss issues in the world economy, including crisis prevention
and the new financial architecture.

The G-20 finance ministers will meet once a year, and the first meeting is
scheduled to be held in Berlin in December.

Canadian Foreign Minister Paul Martin would serve as the group's chairman
for the next two years.

Mustapa said that Miyazawa also updated the finance ministers about the
latest developments in the Japanese economy, its growth prospects for this
year and in the year 2000.

"Miyazawa told us that the prospect for Japan's economy is better next year
than this year with possible tightening of interest rates and weakening of
the yen vis-a-vis the US dollar." Thai Finance Minister Tarrin
Nimmanahaeminda, who also attended the meeting, was quoted by Agence
France-Presse as saying, "Basically we shared the same opinion as the G-7 --
the yen is too strong." The higher yen "may affect Japan's recovery and
that's not favourable for Asian nations," he said.

Finance ministers and governors of central banks are gathered in Washington
to attend the 54th annual meetings of the World Bank and the International
Monetary Fund, which open Tuesday.

Mustapa Tuesday also met with 60 fund managers and portfolio investors at a
meeting organised by Chase Manhattan.

"They were very positive, very upbeat, and expressed general interest to
invest in Malaysia," he said after updating them about the latest
developments in the Malaysian economy.

A year ago international fund managers criticised and shunned Malaysia for
imposing selective capital and currency control measures, but Malaysia's
success in turning around the economy using those measures has sparked
renewed interest among investors to invest in Malaysia.

"This year the mood is more relaxed and they welcome Malaysia's successful
recovery efforts and further relaxation of the control measures," he said.

"They suggested that we go out and be more aggressive in telling investors
about our progress," said Mustapa who will address the annual meetings on
Tuesday, as well as conduct a World Bank seminar on Malaysia's recovery on
Wednesday.