Need to Integrate Asia Bond Markets

Key Business Lobby Floats FTA Panel

Stronger Efforts Must for Asia

Fresh Push for Deeper Regional Monetary Cooperation

 

 

 

 

Need to Integrate Asia Bond Markets

The Star, Online
March 30, 2004

Second Finance Minister Tan Sri Nor Mohamed Yakcop has urged Asian countries to develop harmonised standards and practices to integrate the current fragmented national bond markets in the region. He said Asia should integrate the more developed with the less efficient markets that required capacity building. The region would not be able to reap the full benefits of efficient and vibrant bond markets as long as Asian bond markets remained fragmented, he told the Kuala Lumpur International Bond Conference yesterday. “The risk is that the region will be sidelined by global investors. In the financial market, size and efficiency are critical factors in building liquidity to attract international investors,'' he added.

Click here to read the full Article: http://biz.thestar.com.my/news/story.asp?file=/2004/3/30/business/7652859&newspage=Search

 Back to Top

Key Business Lobby Floats FTA Panel

The Japan Times
March 13, 2004

The Japan Business Federation (Nippon Keidanren) proposed on March 12, the creation of a strategy panel headed by Prime Minister Junichiro Koizumi and a special ministerial post to promote economic collaboration with East Asian economies, including the conclusion of free-trade agreements. Nippon Keidanren, the nation's most powerful business lobby, said Japan needs to forge economic pacts with other Asian nations, including FTAs, as soon as possible. Japan recently launched FTA negotiations with other Asian countries, including Malaysia, the Philippines and South Korea.

Click here to read the full Article: http://www.japantimes.co.jp/cgi-bin/getarticle.pl5?nb20040313a2.htm

 Back to Top

Stronger Efforts Must for Asia

An Institute of Economic Growth (IEG) study of regional and preferential trade agreements has called for stronger regional integration efforts in the form of trade blocs in Asia. The study points out that it is ironical that fast growth of intra regional trade in Asia has not been followed by any regional integration in the form of trade blocs. This is depriving Asia of a vast opportunity for trade creation and improvement in the welfare of Asian countries which is likely to have a positive effect on the welfare of other countries also.

Titled "Preferential trading agreements and regional trade: implications for Asia," the IEG working paper says that it is unfortunate that there is no serious move in Asia to form a strong and genuine free trade area covering the large region despite GATT and WTO rules being biased toward regional trade arrangements and despite the internal and external factors strongly favouring such a regional framework.

Click here to read the full Report: http://ieg.nic.in/, Working Papers, E 240 Ramesh Chand

 Back to Top

Fresh Push for Deeper Regional Monetary Cooperation

The Business Times, Singapore Edition
March 2, 2004

Sometime this month, high-level government officials from the Asean+3 group will report on a study that could have a profound effect on exchange rate and monetary cooperation in East Asia.

If the finance ministers decide to act on the findings of the study, which has been largely kept under wraps since it was initiated last year, it could mark the first step on a road to regional monetary union.

The study, by what is known as the Asean+3 Research Group, is examining a possible 'exchange rate arrangement' for East Asia and the need for a 'regional financial architecture', according Daikichi Momma, a senior official in the Japanese Finance Ministry's international bureau. The plan could involve the evolution of the Chiang Mai network of currency swaps into a regional monetary mechanism, he suggests.

These swaps are bilateral agreements under which East Asian monetary authorities plus Australia agree to support the individual countries they contract with by offering them currency support in the event of a balance of payments crisis, such as that which hit Asia in 1997.

The Asean+3 study may recommend that these bilateral swaps be 'multi-lateralised' into a kind of regional currency fund, according to Mr Momma.

But the study - to be reviewed at the next meeting of the Asean+3 Research Group consisting of research institutes from the six most advanced Asean states plus Japan, China and South Korea - covers more aspects than just the development of the Chiang Mai swaps network, a senior source close to the Bank of Japan told BT.

It also reviews possible exchange rate arrangements for East Asia.

Click here to read the full Article: http://newslink.asia1.com.sg/

 

 Back to Top