Financial Crisis
The global crisis that originated from the US housing and sub-prime mortgage crash spread worldwide and massacred the world’s stock markets are now entering the dangerous phase of damaging businesses and economies, and creating widespread unemployment.
We call for the cooperation and coordination between Asean countries as to tackle with the crisis. All the ASEAN countries should call for an emergency meeting to find solutions as to deal with the global financial crisis and its impact on the region. The governments should take direct stakes in the banks as to increase liquidity, get credit flowing, assist banks raising capital and reassure savers.
We agree with the action taken by the european countries that would inject billion of dollars into troubled banks in an attempt to restore confidence in the financial system as this could lead a rebound in Asian markets.
We hope the World Bank could help the developing countries to strengthen their economics, bolster their financial systems and protect the poor against the financial crisis.
We aware that under the current global financial system, 80 per cent of global savings is being used by the US because the savings rate of its citizens was negative. To prevent a future crisis in the financial world, priority should be given to ensure that a major portion of the savings by Asian countries and oil-exporting countries be used in this region.
We urge those countries with strong economic fundamentals, reserves and trade surplus to provide financial support for those countries suffered from recession. As to cope with financial crisis, we should generate greater domestic consumption and encourage more investments in the country.
On top of that, we suggest that banks should give more loans to people with lenient conditions so that the money can get down to consumers.
Our government had no intention of pegging the ringgit like it did to weather the 1997 Asian currency crisis, and would remain “pro-business.”
We also...
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