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SINGAPORE: Singapore's Senior Minister Goh Chok Tong, who is also the Chairman of the Monetary Authority of Singapore (MAS), on Friday said Asian banks have learnt their lessons after the last financial crisis.
He was addressing a luncheon session at the Indian diaspora conference. Replying to a question on the impact of the current financial crisis on Asia, he answered that the impact of the crisis on the real economy is worrying.
Mr Goh said: "Already we are seeing slower signs of growth for Singapore and likewise for many countries in Asia. There is no escape. US is one of our biggest export markets for most countries in Asia, if not the biggest. Europe is also a big market for us.
"So when the real economy begins to be affected, all of us will be adversely impacted. That is the part I worry about. What will growth be like next year and how long will slow growth be dragged out for all of us?"
"This time the financial turmoil has affected more of the West, US and Europe. Asia as of now has not yet been as adversely affected as the economies in the West. That is partly because, in a way, we are less sophisticated in questions of derivatives. I think it is a good thing.
"Many of our investors want to jump into derivatives. But also after the Asian financial crisis, the banks in Asia, they have re-capitalised themselves.
"They are better regulated, they have better boards and management and these are the principal factors that have in a sense prevented us from being sucked in by the financial turmoil in the West.
"But I would say the worrying news would be how the financial turmoil in the West is now affecting the real economy in Europe and in the US."
- CNA/yb
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