MALAYSIA SEEKS DISCUSSION OF GLOBAL FINANCIAL

UNCLAS KUALA LUMPUR 001009 SIPDIS DEPT FOR EAP/EP: M. DASTIN-VANRIJN AND A MATHUR DEPT PASS USTR E.O. 12958: N/A TAGS: ECON ECIN ETRD SOCI PGOV PTER MY SUBJECT: MALAYSIA SEEKS DISCUSSION OF GLOBAL FINANCIAL CRISIS AT APEC REF: SECSTATE 102397 AND KUALA LUMPUR 885 1.(SBU) Summary: Malaysia,s focus at the upcoming APEC Ministerial and Leaders Meeting will be discussion of approaches to dealing with the global financial crisis. Malaysia will be supportive of continuing efforts at trade liberalization in the WTO and regional integration as well as structural reform. Given that Malaysia is in the middle of a leadership transition (highlighted by the fact that the Deputy Prime Minister will attend the Leaders Meeting in place of the Prime Minister),Malaysia is more likely to be a quiet contributor than an active promoter. End Summary. 2.(SBU) Rahman Mahmat, the Secretary General of the Ministry of Trade and Industry (MITI) told Econcouns November 7 that Deputy Prime Minister/Minister for Finance Najib, would be sitting in for the PM at the Leaders Meeting, and Rahman said he would attend as his &plus one8. Malaysia,s top priority at the upcoming APEC Ministerial and Leaders Meetings in Lima Peru would be to engage on addressing the global financial crisis and global economic slowdown. 3.(SBU) According to Rahman, Malaysia would continue to express support for the multilateral trading system and the work being done in the current WTO Doha round. With regard to regional integration, he said Malaysia also would be supportive of the ongoing Second Study being done on FTAAP, but he cautioned that Malaysia viewed the FTAAP as a long-term project rather than a priority at this time. (Note: MITI Deputy Secretary General Dr. Rebecca separately told Econcouns that as ASEAN had concluded deals over the past few months with India, as well as with Australia and New Zealand, Malaysia was focusing the efforts of its trade negotiators on bilateral FTAs. End Note.) Rahman said Malaysia would contribute on the broad array of APEC issues but had a particular interest in structural reform and the need for expanded economic and technical cooperation and capacity building. 4.(SBU) Our contacts at other missions in KL also got generally passive responses from MITI and MFA on Malaysia,s goals for the APEC Leaders Meeting. The New Zealand High Commission,s readout was that that active supporters for increased efforts at regional integration would have to be content with Malaysia remaining &quietly supportive.8 Singapore High Commission Economic Officer Lee Cher Farn told Econoff that Malaysia, and its newly appointed APEC Senior Official did not appear particularly prepared for the APEC meetings. In discussions with both the Ministry of Trade and Industry (MITI) and Ministry of Foreign Affairs (MFA),she said GOM officials explained that Malaysia "intends to observe the discussions" but that GOM does not have any specific agenda items it would intend to push. RAPSON