Asia may be the “future” but both Singaporean and Indonesian leaders believe that the region cannot detach itself from the rest of the world, particularly Europe and the US.
Speaking at the start of the two-day World Economic Forum (WEF) in Jakarta, Prime Minister Lee Hsien Loong said, “America remains a very powerful country and Europe has a lot of potential, even though it is facing difficulties now — (and) we have to link with these parts of the world.”
Klaus Schwab, Executive Chairman of WEF, noted that whatever happens in the US will also affect the region.
Mr. Lee said the funds fleeing US stocks are blowing bubbles in assets and the real estate sector in China, Hong Kong and Singapore. He added that this is cause for concern, due to the sudden sharp increase in property prices.
“It’s an open global economy and you cannot completely cut yourself off. Neither is it easy for any individual country to solve the problem by itself. That’s our dilemma,” he said.
Indonesia’s president Susilo Bambang Yudhoyono, emphasised in his speech that everyone is united in a globalised world.
The president argued that today’s globalisation should be inclusive rather than exclusive, united rather than divided and should promote cooperation rather than confrontation.
He also noted that he favours talking rather than fighting, suggesting dialogues to build a consensus that will take on common challenges.
Meanwhile, Mr. Lee believes it will be helpful for Asia, which is battling inflation, if the Americans “’put their house in order.”
“Money is running around looking for investments. The result is you get asset prices going up in emerging markets, which causes many problems.”
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