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Southeast Asia "written off" except for Singapore:Lee Jr

SINGAPORE and Malaysia should work to produce "some good news" for Southeast Asia, whose image has been frayed by political turmoil in key countries, Prime Minister Goh Chok Tong said.

In a speech late Feb 7 welcoming Malaysian Deputy Prime Minister Abdullah Badawi to Singapore, Goh said the two countries were in the best position to help fellow members of the Association of Southeast Asian Nations (ASEAN).

"As two of the best performing economies in ASEAN, we should work together to help the region recover from its economic problems," he said.

"For example, we should produce some good news together to dispel the generally gloomy assessment of our region by foreign investors."

Analysts have said that political problems in Indonesia, the Philippines and Thailand and disputes over human rights abuses in army-ruled Myanmar have dissuaded investment in the region.

Northeast Asia, which covers the giant Chinese market, has been luring investors at the expense of ASEAN, which also includes oil-rich Brunei and the less developed economies of Cambodia, Vietnam and Laos.

"We must therefore adjust our economic strategy. More than ever, we now should work together to compete as a grouping against other regions," Goh said.

"In this regard, strong relations between our two countries will catalyse greater cooperation in ASEAN," he said.

Singapore has been criticised for negotiating bilateral free trade agreements with several countries outside of ASEAN.

But Singapore officials have defended the strategy as a way to "reach out" to the world and draw attention to the region. They also maintain that such interlocking pacts will constitute building blocks to a more open world trading system.