Asia must guard against repeat of 1997 financial crisis: Philippine central bank chief
Asian countries must remind themselves about what happened during the region’s financial crisis in the late 1990s and guard against a recurrence of such shocks, the head of the Philippine central bank said on Wednesday. Before the Asian financial crisis started in 1997, regional economies saw huge capital inflows that prompted the World Bank to describe it as the “East Asian miracle”, Eli…
The head of the Philippine central bank, Eli Remolona, has warned Asian countries to learn from their past mistakes and take measures to avoid a repeat of the financial crisis that hit the region in the late 1990s. At the International Monetary Fund and World Bank annual meetings in Bangkok, Thailand, Remolona emphasized the need for vigilance against potential financial shocks.
He noted that the previous crisis was not a miracle, but rather the result of excessive investment and capital inflows. Remolona called for a renewed focus on assessing financial vulnerabilities and potential spillovers among economies in the Association of Southeast Asian Nations. While acknowledging the progress made by the IMF in addressing financial risks, Remolona highlighted the energy intensity of Asean economies as a potential risk, given the reliance on oil and gas imports.
Japan's vice finance minister, Atsushi Mimura, also cautioned against excessive fiscal support, urging countries to exercise discipline in providing relief to households and firms affected by energy shocks. Mimura emphasized the importance of strengthening investment to diversify supply chains in critical minerals and energy, particularly in light of increasing competition from China.
He stressed that all Asean countries should continue to invest in AI and innovation to remain competitive in the global digital economy.
Written by urgent.news from South China Morning Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
