STATEMENT OF ASIAN FINANCE MINISTERS AND CENTRAL BANK GOVERNORS
: Indonesia, Japan, Korea, Malaysia, Philippines, Singapore and Thailand
October 3, 1998
Washington, DC
Finance Ministers and Central Bank Governors of Indonesia, Japan, Korea, Malaysia, Philippines, Singapore and Thailand met today to reflect on the developments of the economy in the region and to talk about the initiatives to address the challenges facing their economy.
First, the Ministers and Governors welcomed the recent improvement in the exchange rates of Asian emerging market countries, and agreed that the stability of exchange rates continues to be important for stable and sustainable economic development.
Second, the Ministers and Governors agreed that the balance of risks in the world economy had shifted. To overcome the current economic difficulties, while avoiding the risk of falling into deflationary spiral, they agreed that it is imperative for the Asian countries to take stimulative measures to put their economy on the path of recovery and sustainable growth.
Third, the Ministers and Governors noted the importance to promote the corporate and financial sector restructuring, and they agreed to work closely on this issue. They also noted the important role of private capital flow to Asian countries for the economic recovery. They also agreed that in many countries due respect should be paid to the socially vulnerable by strengthening the social safety net and implementing public undertakings to increase employment.
Finally, the Ministers and Governors welcomed the initiative announced today by Japan, to support Asian countries overcome the current economic difficulties by providing a package of support measures totaling US$30 billion. The countries concerned intend to immediately engage in bilateral discussions on how to implement the initiatives.