'Overhaul world financial system'

2008/10/19

'Overhaul world financial system'
By : Adie Suri Zulkefli

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Tan Sri Nor Mohamed Yakcop serving ‘air batu campur’ to young guests at his Hari Raya Aidilfitri open house in Teluk Air Tawar yesterday.


BUTTERWORTH: Ten years ago, Malaysia called for reforms in the global financial system but this was rejected by the international community.

Today, as fears of a worldwide recession mounts, European leaders are talking about changing the system.

Second Finance Minister Tan Sri Nor Mohamed Yakcop said, even though Malaysia had managed its economy well, the country would not be spared from the impact of the global financial crisis.

"We have built strong economic fundamentals but we can't say we are immune to the impact of the global crisis in the long run," said Nor Mohamed, who is also member of parliament for Tasek Gelugor, at his Hari Raya Aidilfitri open house in Taman Air Tawar Indah, Teluk Air Tawar.

He said Malaysia would continue to call for reforms in the global financial system.

He said it was time for the developed and developing nations to work together.

"We need to cooperate to formulate a new global financial infrastructure that is just and transparent, and do away with double standards and hypocrisy."



Nor Mohamed said the new framework should protect nations that managed their economies wisely from the impact of global crises.

He said the world reserves used by the United States to keep its economy going included the reserves of Asian countries and oil producing nations. He said the bulk of the reserves which were used to buy treasury notes, bills and bonds issued by western nations had been depleted by the crisis.

"We are proposing that these reserves be invested in developing infrastructure in Asean nations so that the region can reap the benefit by growing our economies together."

Nor Mohamed said Asean needed about US$50 billion (RM176 billion) for infrastructure development annually.

Malaysia will be hosting a financial infrastructure seminar on Nov 10 for leaders from the region to discuss the issue.