Regional%20Conference%20on%20the%20impact%20of%20the%20Global%20Financial%20Crisis%20to%20the%20Vulnerable%20Sectors%20in%20the%20Asia%20Pacific%20Region:%20Civil%20Society%20Voices%20and%20ASEAN%2028-29th%20July%202009%20

1

• Regional Conference on the impact of the Global
  Financial Crisis to the Vulnerable Sectors in the
  Asia Pacific Region Civil Society Voices and
  ASEAN 28-29th July 2009 Jakarta Indonesia
• ASETUC/UNI Apro Panel ONE Intervention
• By
• MOHAMED SHAFIE BP MAMMAL
• General Secretary
• ASETUC

2
Preamble

• The leaders of the 10 member ASEAN have met in
  March and July 2009 to seek ways to soften the
  impact of the meltdown on their export-oriented
  economies with millions of jobs lost.
• While ASEAN is grappling with the effects of the
  crisis, the leaders are still confident that
  with the 570 million people in the region they
  have a bright future taking into consideration
  the internal and external cooperation between
  other global trading partners of ASEAN.
• The global meltdown is common to all nations and
  the ASEAN nations are not an exception.

3
Collapse of the Global

• The Global Financial markets continue to be hit
  by the adverse effects of the Unites States
  financial crisis.
• With the collapse of the Reagan-Thatcher
  theory of Capitalism Global Governments are
  looking for a new economic order which will
  sustain the international and local financial
  systems.
• ASETUC is closely monitoring how the ASEAN
  partners are coping with the increasing
  unemployment as numbers of retrenched workers
  increase. There is also serious discussions on
  how ASEAN partners will deal with foreign migrant
  workers.
• .

4
The impact of the Crisis on the Malaysian
Economy

• While it is widely agreed that the unregulated
  Global Financial System has lead to serious and
  widespread economic downturn, the closed-door
  economic policy is still subject to the adverse
  effects from the Global Financial turmoil.
• Some of Malaysias protectionist policies made
  the local companies less competitive over the
  years. In the words of Milton Friedman there is
  no such thing as a free lunch

5
Stimulus Packages

• The Malaysian government has so far introduced
  two stimulus packages totalling RM67 billion. A
  stimulus package of RM7 billion was introduced
  in November 2008 and RM60 billion will be spent
  over the next two year period. The government
  hopes that the stimulus packages will work and
  put the economy back on the track to financial
  and economic recovery
• As of June 2009 government have spent
  RM6.8billion from the first stimulus package of
  RM7billion and RM1.6billion from the second
  stimulus package of RM60billion. The preliminary
  report for the 2nd quarter of 2009 shows that the
  construction Sector has shown good results and
  the other sectors have started to recover. But
  the results of the 2nd stimulus package which
  will be spent over two years will only be known
  after 2010. To achieve the growth rate of the
  golden year 1997 is still far off.

6
Free market regulates itself?

• The theory that in a free-market economy the
  market should control the market and the market
  should regulate itself is not working (Dr.
  Mahathir)
• This regulation and some flexibility in the
  market will free itself from the abuses of the
  freedom given to the banks and financial
  institutions before the crisis.

7
Impact of the global crisis on ASEAN community

• Rapid increase in unemployment for locals and
  migrants workers.
• Contraction of Trade and Investments.
• Reduced revenue from Tourism
• Reduced access to Credit and business financing
• And others.

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conclusion

• While the ASEAN member countries grapple with
  problems of unemployment and other related
  problems in their own countries, the creation of
  a single market with free movement of goods and
  services in ASEAN is already taking shape.
• Asetuc is also concerned with the unemployed,
  retrenched workforce in ASEAN and the plight of
  migrant workers from the sending countries
  (Indonesia, Philippines, Vietnam, Cambodia,
  Myanmar, India, SriLanka and others from all over
  Asia) who have work permits but no jobs as
  promised. The task force on ASEAN migrant workers
  and ASETUC-UNI-Apro are in constant discussion
  with the ASEAN governments to cope with the
  situation.
• Thank you