MISUNDERSTANDINGS IN RELATIONS OF SINGAPORE, MALAYSIA AND INDONESIA

Mr Tay Beng Chuan asked the Minister for Foreign Affairs (a) whether recent misunderstandings and tension in the relations of Singapore, Malaysia and Indonesia call into question the fundamental objectives of ASEAN solidarity and economic cooperation; and (b) whether the Asian economic crisis will impede the smooth implementation of the ASEAN Free Trade Area by 2003.

Prof. S. Jayakumar: (a) It is true that there are bilateral differences among some ASEAN member countries. However, this is not unusual as ASEAN countries have had bilateral problems in the past. Fortunately, ASEAN members have not allowed their bilateral disputes to impede their ongoing cooperation or to undermine ASEAN unity.

For example, notwithstanding the current problems besetting the region and certain bilateral issues, ASEAN Foreign Ministers held a successful annual Ministerial Meeting in Manila in July. Recently, on 23rd September, I chaired an ASEAN Foreign Ministers' Meeting held in New York on the fringes of the UN General Assembly, during which the Foreign Ministers reached consensus on a number of issues, including on Cambodia. The ASEAN Finance Ministers met on 4th October 1998 in Washington DC, where they agreed to endorse the terms of understanding for an ASEAN Surveillance Process. A few days ago, the ASEAN Economic Ministers also met in Manila to discuss cooperation in economic matters. These ASEAN Ministerial meetings demonstrate that notwithstanding ongoing bilateral differences and other difficulties, ASEAN member countries continue to cooperate on a range of important issues.

There is no doubt that the regional financial and economic crisis poses one of the biggest challenges for ASEAN. All the ASEAN countries have been affected, to varying degrees. The challenge now is for ASEAN, during this period of difficulty, to continue such cooperation at all levels to tackle the problems facing the region.

(b) On the second part of the Member's question, I wish to inform him that despite the financial and economic crisis, ASEAN countries have been moving ahead on the ASEAN Free Trade Area, or AFTA, initiative. At the recently-concluded AFTA Council Meeting held in Manila on 6th October 1998, ASEAN countries reiterated their commitment to implement AFTA and further agreed to expand the number of tariff lines that can be accelerated ahead of schedule. Indeed the AFTA Council recognised that further acceleration of AFTA was particularly important in light of the current financial and economic crisis. ASEAN's commitment to economic cooperation is further demonstrated by the endorsement of the ASEAN Economic Ministers, at their meeting in Manila from 7th-8th October 1998, of the Framework Agreement on the ASEAN Investment Area to enhance the investment climate in ASEAN.