Asian Finance Leaders Warn Against 1990s Crisis Recurrence
Eli Remolona urged Asian nations to guard against financial shocks during an IMF panel in Bangkok while Japan advised investment in AI and innovation.
Bangko Sentral ng Pilipinas Governor Eli Remolona urged Asian countries to guard against a recurrence of the late 1990s financial crisis during an IMF panel in Bangkok. Remolona argued that the region has not put enough effort into preventing similar shocks, claiming the pre-1997 period known as the East Asian miracle was not a true miracle.
Krishna Srinivasan of the International Monetary Fund countered this perspective, stating the organization has improved its framework for assessing financial vulnerabilities and managing volatile capital flows. The discussion highlighted a divide between regional concerns over systemic stability and the IMF's confidence in its updated assessment tools.
Japan Vice Finance Minister Atsushi Mimura identified inflation and Middle East energy shocks as immediate short-term risks. He advised that fiscal support should be targeted, tailored, and temporary. Mimura also encouraged ASEAN nations to invest in AI, innovation, and the diversification of critical mineral supply chains to maintain competitiveness against China.
