AEM MINISTERS WELCOME ALTERNATIVE MONITORING MECHANISM FOR FINANCIAL SECTOR

SINGAPORE, Aug 28 (Bernama) - The 40th Asean Economic Ministers(AEM)meeting Thursday welcomed an alternative monitoring mechanism for the financial sector.

It was proposed by the Working Committee on Financial Services
Liberalisation (WC-FSL) and the Working Committee on Capital Account
Liberalisation (WC-CAL),according to a statement released by the Ministry of
International Trade and Industry, Malaysia.

To ensure Asean was on track with the implementation of its
commitments in
the Asean Economic Community (AEC) blueprint, the ministers agreed that the AEC
scorecard would be web-enabled to all, to produce an assessment of the current
situation while highlighting areas for improvement.

The meeting also welcomed Malaysia's proposal for Asean to undertake work
on regional structural and regulatory reforms to create a highly competitive
economic environment towards achieving the objectives of the AEC by
2015.

The ministers signed three Mutual Recognition Arrangements (MRAs), namely
the Asean MRA on dental practitioners, the Asean MRA on medical practitioners
and the Asean MRA framework on accountancy services.

The MRA enables the qualifications of the professional service suppliers to
be mutually recognised by signatory member countries, hence facilitating easier
movement in the Asean region.

On Asean's external economic relations, the ministers discussed the
progress made in the negotiations for Free Trade Areas (FTAs) as well as
economic cooperation activities with dialogue partners, China, Japan, Korea,
India, Australia and New Zealand, European Union (EU), the United States, Canada
and Pakistan.

The ministers also welcomed the conclusion of negotiations for the
Asean-India FTA for the trade in goods as well as the Asean-Australia-New
Zealand FTA.

The Minister of International Trade and Industry, Muhyiddin Yassin
also highlighted that more needed to be done to enhance the engagement between
the Asean-Business Advisory Council(ABAC) and Asean senior officials.

During the AEM consultations with ABAC and the US-Asean Business Council,
Muhyiddin stressed that it was insufficient for ABAC to meet with ministers
only.

A deeper engagement between senior officials and ABAC would ensure that the
implementation of the AEC work plan met the objectives of enhancing
intra-Asean trade and investment, while ensuring that Asean was the destination
of choice for foreign investments.

In addition, the business council reported that it has commenced
discussions with the Asean Cooperative Organisation (ACO), to strategise on the
supply and demand of commodities in the face of rising prices.

The council also addressed issues relating to the EU's REACH (Registration,
Evaluation and Authorisation of Chemicals) that required all manufacturers
exporting to the EU to follow a set of standards and accreditation imposed by
it.

During the AEM-Ministry of Commerce of the People's Republic of China
(MOFCOM)consultation, Malaysia reiterated to the Chinese that its business
sector must work closely with its Asean counterparts to help build a strong and
resilient business community within the Framework of ACFTA or the Asean-China
Free Trade Area.

Given the increasing number of Malaysian investors in China, Malaysia
called for an early conclusion of the Asean-China Investment agreement.The
investment agreement is expected to be concluded by December this year.

Meanwhile, during the Asean Free Trade (AFTA) Council meeting, Muhyiddin,
emphasised the importance of Asean member states ensuring that all deadlines
pertaining to the reduction and elimination of duties are met.

-- BERNAMA