because by international standards the regional equity and bond markets are small and fragmented. we made some headway four years ago with the chiang mai initiative ( cmi ), which saw the expansion of existing multilateral currency swap arrangements to include all 10 asean members, as well as the conclusion of 16 bilateral swap arrangements, totalling us $ 36. 5b in combined facility. when the cmi was launched in may 2001, it was agreed that finance ministers should review the initiative 3 years after implementation. so it would be timely this year, for asean finance ministers together with our “ plus - 3 ” counterparts to consider what and how the review of the cmi could be done. we should also explore further avenues of cooperation. for example, we may develop greater linkages between stock exchanges in the region, or harmonise standards and conventions so as to make it easier for investors to operate across the capital markets in the region. in such initiatives, we do not have to wait for all asean members to be ready. once two or more asean members are ready to make the move, they can work together as pathfinders for the whole region. conclusion globalisation has presented many challenges to asean, but it has also created many opportunities. integrating our economies requires hard work, political will and often, tough decisions. asean is determined to overcome the challenges, and embrace globalisation to benefit the lives of our people. governments will need to lead the way, by implementing sound policies that foster development and growth. foreign investors too will play a key role, by supporting good policies and exploiting the full potential of our markets. once the people of asean are aware of the larger challenges that the region is facing, i believe they will support the agenda for economic cooperation which will improve their lives. on this note, let me now declare the 8th asean finance ministers meeting open. i wish you meaningful and fruitful discussions.

we should have an fta between china and the original six asean countries. by 2015, all ten asean members will be included. india is also negotiating to establish an fta with asean by 2011. japan, which has been a key investor in asean, has also proposed a japan - asean comprehensive economic partnership, which both sides are now working on. the us, too, has announced the enterprise asean initiative, under which it will pursue various agreements with asean countries, taking into account their respective progress in economic liberalization. so we are strengthening our linkages with all our key trading partners. last october, the leaders committed to an asean economic community by 2020. this is an ambitious vision which will see the creation a single market for goods, services, capital and talent in asean. but 2020 is a long time from now, and we must make progress long before this deadline. beyond trade in goods, asean needs to step up its integration in other areas. for example, much work remains to be done in forging common investment rules, and in liberalising and integrating the services sectors. financial cooperation financial cooperation is a critical component of this effort. financial services is a significant part of our ( 6 - 7 % ) regional economy, and is a growing sector. but it is not just the size of the market that makes financial services important. the asian crisis has demonstrated that with globalisation and greater ease in transferring funds around the world, it is more critical than ever that our financial sectors be sound, and our economies not be weakened by excesses. in recognition of the importance of the financial sector, the asean finance ministers started to meet in february 1997. we have introduced important co - operation initiatives, such as the asean surveillance process to keep track of economic and financial trends and to provide early warning of economic vulnerabilities, and the asean finance work program to improve financial procedures, standards and corporate governance within member countries. these are important mechanisms to guard against a repeat of the asian crisis. to further liberalise and integrate our markets, the finance ministers last year endorsed a roadmap for regional financial integration. this will guide us towards greater liberalisation and integration of our markets. to keep asean on the radar screens of international investors, finance ministers are planning to organise joint road - shows to europe and the us to promote the investment opportunities in asean. one possible area for collaboration is in the capital markets. while regional capital markets have generally experienced strong growth since the financial crisis, our potential is limited