Dr. Zeti, Chairman of the Malaysian National Investment Agency, believes that globalization will continue and Asia is extremely resilient

On December 3, 2020, the Boao Forum for Asia Eurasian Cooperation Dialogue Summit special session “Globalization Prospects in the Post-epidemic Era”, Dr. Zeti, Chairman of the Malaysian National Investment Agency and former Governor of the Bank of Malaysia, pointed out that despite the severe economic contraction under the epidemic , Companies closed down and people were unemployed, but there are signs of improvement worldwide. When the crisis subsides and the economy recovers, financial globalization will continue, and the management of capital flows will be better.

Dr. Zeti reminded us to pay attention to the inward sentiment in some areas after the epidemic. At the same time, he pointed out that the trend of anti-globalization began to appear before the epidemic, and now it has become more self-sufficient and the supply chain has begun to withdraw. She believes that globalization has actually shifted from cross-border trade and the flow of personnel and capital to the globalization of finance and investment, and now it is turning to the globalization of technology, knowledge and information.

          She mentioned that given that Asia has done relatively well after the epidemic, the magnitude of economic contraction is similar to the past. Asia has benefited extensively from globalization and will continue to benefit, although the format will change. This is due to three factors: first, Asia has a high degree of economic flexibility and can quickly adjust to changing conditions; second, after the Asian financial crisis, Asia has promoted financial reforms and strengthened financial markets, so as to withstand the 08, The 2009 global financial crisis; third, Asia focused on infrastructure construction and strengthened interconnectivity. In this regard, some smaller economies in Asia with high savings rates use their savings for investment and capital circulation in the region.

          She emphasized that ASEAN has a population of 650 million, GDP is the fifth largest in the world, and 25% of trade is conducted with countries and regions in the region. Intra-Asia connectivity is constantly being strengthened. The recently signed “Comprehensive Regional Economic Partnership Agreement” is a major sign.

 Source: The Paper, The Paper, Government Affairs