Phl, other Asian economies in better position to handle external shocks

KUALA LUMPUR, Philippines – Asian economies, including the Philippines, are better positioned now than they were during the 1997 Asian financial crisis to handle external shocks, experts said during a two-day summit here.

At Royal Dutch Shell’s Innovation Summit 2013, experts said Southeast Asian economies in particular are growing fast and would be a big growth engine in Asia.

In one of the sessions, Datuk Yvonne Chia, independent and non-executive director for Shell Refining Co., said that Asian economies have collaborated well on many fronts, leading to a stronger region this time

 â€œWhat we have immediately started after the Asian financial crisis is for us to become innovative. There are three areas we have a lot of close collaboration,” she said.

These include coming together for surveillance of systemic risks for the region – for Southeast Asia in particular. She said central banks have broadened and deepened reforms.

“This time around, I’m confident that the region would have a much more focus on how we handle the tapering when the funds go back to the US,” she said, referring to the possible end of stimulus given to the US economy, which is now on its way to recovery.

“The second part of collaboration is broadening the capital markets. Today, we are trying to harmonize standards in terms of capital flows. If you look at major bond issue, the investors are from Asean,” she said.

She said that Asian countries have also put in place a whole infrastructure for funding.

 â€œThese are the three developments which I think we have collaborated well, which would improve the capacity building and stability in the region,” she said.

All these efforts would help countries prepare for the Asean Economic Community 2015.

The AEC is envisioned to be a single market and production base for the 10-member ASEAN community, with an estimated consumer base of 600 million people. Integration means duty free importation and tougher competition among member countries.