Davos forum hears rallying cry

Hong Kong's most senior government official at the World Economic Forum in Davos, Switzerland, has called on Asian countries to look to themselves to reform their economies and not wait for a global response.

Head of the Hong Kong Government's central policy unit, Gordon Siu Kwing-chue, believes the solution to the crisis lies with the countries themselves.

Mr Siu was speaking as deputy finance ministers from the Asem group - comprising the 10 Southeast Asian economies and the 15 European Union countries - prepare to meet in London this week.

'Don't go begging and bawling. Do something about your own house,' Mr Siu said.

'Believe that you can do something with your own system . . . I believe good will come out of the current problems.' American and European policy makers have made Asia a priority amid fears the crisis could impact on their economies.

The Asian crisis is also expected to take centre stage at the G7 finance and central bankers' meeting at the end of the month.

Several European countries are concerned about the crisis - in particular with the effect cheaper exports will have on their domestic industries.

Hong Kong has been active at the World Economic Forum, publishing a leaflet on its status since the handover, and hosting a party for businessmen, academics and politicians anxious to learn how effective the SAR is able to withstand pressure on the peg and how Hong Kong has survived the crisis.

The Government is still sticking to the sanctity of the peg, and Mr Siu said the shake-out that had occurred could promote wider and greater liberalisation in the region.

'During the past decade, advice on the need for openness, fairness, and transparency in business in East Asia has so often fallen on deaf ears, drowned out by those choruses of loud praise and high growth figures.

'Now perhaps, there is a more perceptive environment for such advice,' he said.

Mr Siu said Hong Kong was studying the impact of the crisis, particularly in regard to the collapse of the local brokerage CA Securities.

Mr Siu said it was likely the Government would look to provide more regulation of companies that ask for dealing margins from its clients.