Goh for pan-Asian capital market

By P. S. Suryanarayana

SINGAPORE, APRIL 19. The Singapore Prime Minister, Mr. Goh Chok Tong, has proposed the creation of a pan-Asian capital market, while the Malaysian Prime Minister, Dr. Mahathir Mohamad, today expressed the hope that a strong Euro-currency would in the future help reform the international monetary system.

These two comments, made in separate situations, acquired considerable importance in the context of a chain reaction of turbulence across Asian bourses even as U.S. shares, especially in the technology sectors, tumbled last week before a modest bounce-back early this week. Standing on the plank of Singapore's strength as a State with an incessant economic focus, Mr. Goh said during a visit to Hong Kong, ``If you can, over time, create a huge Asian stock exchange by combining our shares and put them in this market and (if these) are traded in various stock exchanges (across the world), we would (then) be able to create a huge capital market for Asia.''

As a prelude to the creative economic possibility of a pan-Asian bourse, Mr. Goh suggested the ``cross-listing of shares'' on the existing exchanges as ``one step forward'' in the long-term direction. This proposal was a sequel to his perception of the latest shock-waves on the stock exchanges as a ``correction.''

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Section  : International
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