The Thai economy has done particularly well. For the past few years it has been the fastest growing economy in Southeast Asia. Through a series of bold initiatives, the Thai government has revived the rural economy, stimulated domestic demand, and repaid its IMF loans. This has bolstered confidence and got business moving again. Indonesia’s economy has improved significantly despite a complex political situation. Reforms were slow initially, as corruption and an unreliable legal system impeded progress. Nevertheless, Indonesia has made significant headway in financial sector reforms. IBRA accelerated the pace of its bank asset sales, while non-performing loans ratios fell from nearly 50% in 1998 to just 8% last year. Indonesia graduated from the IMF programme in December 2003, and has continued to maintain sound macroeconomic policies. While foreign direct investments remain slow, the oversubscribed $ billion sovereign bond sale in March this year is a vote of confidence from international investors. The challenge over the longer term is to attract enough investments to sustain growth and reduce unemployment. Overall, Asia is showing a new dynamism, and has put the financial crisis behind it. For all the difficulties that remain, this is probably the most promising region in the world. Asia’s strategic landscape Asia’s economic growth rests on the stability of the strategic environment in the region. Constructive and stable relations among the major powers set limits on rivalries and conflicts in the region, and enable trade and investments to flourish. The key post Cold War global geopolitical reality is America’s unique pre-eminence.

Lee Hsien Loong: Prospering in a rising Asia Speech by Mr Lee Hsien Loong, Deputy Prime Minister of Singapore and Chairman of the Monetary Authority of Singapore, at the opening dinner of the Conference Board Symposium on Asian Economies and Financial Markets, Singapore, 27 May 2004. *  *  *  Distinguished Guests, Ladies and Gentlemen, Let me first welcome all of you to the Conference Board Symposium on Asian Economies and Financial Markets, held for the first time here in Singapore. Asia’s comeback since the financial crisis Asian economies have come a long way since the financial crisis in 1997. For six years they have had a tumultuous ride, marked by unexpected shocks and painful adjustments. The September 11th attacks were followed by the Bali and Marriot bombings in Indonesia, which shook confidence in the region and brought the harsh realities of Islamist extremist terrorism closer to home. Last year, the Iraq war and the SARS outbreak weakened business sentiments and consumer spending, setting back economic recovery yet again. Prospects for the region have since brightened considerably, on the strength of a synchronised upturn in the G3 economies. The electronics industry, a lynchpin of export-driven Asian economies, is finally picking up robustly after a prolonged slump. Investor confidence has returned, bond spreads have narrowed, and stock markets have outperformed the developed countries, until very recently. The Asian crisis forced governments in the region to tackle weaknesses in their financial and corporate sectors and implement much needed structural reforms.