Your Excellency Phan Van Khai, Prime Minister of the Socialist Republic of Vietnam,

Your Majesty and Your Excellencies, the Heads of Government of the ASEAN member countries,

Your Excellency Hun Sen, Prime Minister of the Royal Government of Cambodia,

Honorable delegates,

Ladies and gentlemen,

Xin Chao,

At the outset, allow me to express my sincerest appreciation to the government and the people of Vietnam for their warm reception and gracious hospitality to the Philippine delegation. Allow me also to congratulate Prime Minister Phan on his assumption to the chairmanship of the Summit. His wisdom and competence will no doubt add to the success of this important meeting.

At The End of a Crisis

The Sixth ASEAN Summit is our last formal meeting in this century. This, therefore, is an opportune time to concretize our plan of action to achieve the ASEAN vision of the free flow of goods, services, capital and investment by the year 2020. We need to ensure that the region emerges from the crisis stronger and ready to face up to the global challenges of the next century.

Indeed, ASEAN is facing its greatest challenge since its founding thirty-one years ago. The financial crisis that started in the region now plagues the entire world. In place of phenomenal growth recession now stalks countries in the region. The human toll of the financial crisis is even more disturbing. As production fell and unemployment rose, more than 40 million people have been pushed back into absolute poverty, reversing much of the past gains in poverty alleviation. It is imperative that we quickly stabilize the situation, strengthen social safety nets and pursue pro-growth strategies.

Beyond these, we must look longer-term actions to ensure that ASEAN maximizes the benefits from globalization while minimizing its downside risks. We must be resolute in the implementation of the ASEAN surveillance process, to provide us early warning and to enhance macroeconomic and financial stability in the region. We may even expand this cooperation mechanism by including regular consultations with the academe, business, and other concerned sectors of society.

ASEAN must also take a more proactive role in discussions on reforms in the international financial architecture. Among the areas ASEAN can actively contribute to are issues relating to transparency, orderly capital account liberalization, international regulatory cooperation, and, more importantly, the social dimension of the architecture.

I give particular importance to the social dimension of the financial system, since it is the poor and vulnerable segments of society who bear the brunt of any crisis. ASEAN must ensure that the social dimension is not relegated to the sidelines ever again.

With the sustained support of the international community, the firm commitment by major industrialized global growth and our own resolute efforts to implement structural reforms, I am confident that the crisis will end sooner rather than later.

But this crisis has not only dealt body blows to individual countries in the region. Outside this hall, doubts have been raised about the ASEAN spirit, about our solidarity, about our credibility.

If we are to face the future as a united and effective front, we need to address these doubts here and now. We have to be an ASEAN confident in the capabilities of its institutions an mechanisms - an ASEAN enhance by truly meaningful cooperation in the political, economic and functional areas. Not for others and certainly not for show, but for ourselves and for our future. We have to move, and move boldly.

Concrete Approaches to the Future

For starters, we can accelerate and deepen our tariff reduction program and achieve early consolidation of AFTA for our 500 million consumers and our export market; enhance regional investment dynamism by facilitating the extension of better incentives and privileges to all ASEAN investments; intensify industrial and other sectoral cooperation; and broaden our commitments to freer regional trade in services.

In the functional sector, putting priority to human resource development is the key. It is just as important to address the environment, through high-impact programs such as enhanced cooperation on water conservation, improved management of coastal zones, and enhanced regional efforts to address climatic change.

Of particular interest to the Philippines is poverty eradication, an area which ASEAN has only recently begun to address head-on. By enhancing skills training, ensuring food security and proper nutrition, creating jobs, and other modalities which the Philippines has contributed to the Hanoi Plan of Action, poverty eradication can have the deepest meaning for our peoples welfare.

The human toll of the financial crisis, which I spoke of before, demands urgent and concrete action. We must implement with fervor the ASEAN Action Plan on Rural Development and Poverty Eradication, as well as the ASEAN Action Plan on Social Safety Nets. Our poor deserve nothing less.

By actively addressing poverty, we tackle another problem of equal import. Transnational crime is becoming more and more a function of poverty. To eliminate poverty would be to eliminate the motivations for engaging in illicit activities in order to eke out a living. The continuing scourge of illicit activities such as drug trafficking, money laundering, arms smuggling, terrorism, trafficking in women and children, and piracy should be dealt with up front.

ASEAN is up to that challenge. An ASEAN experts meeting on transnational crime held in Manila last month resulted in the formulation of a regional plan of action, an institutional framework for ASEAN cooperation, and preliminary efforts towards the establishment of an ASEAN Center on Transnational Crime (ACOT) in the Philippines.

I am hopeful that these important initiatives will be approved for implementation at the 2nd Ministerial Meeting on Transnational Crime to be held early next year. In this regard, I must commend Myanmar on its willingness to host the said meeting, and for its readiness to play a significant part in a collective effort to secure peace and order in the region.

Towards a community of Caring Societes

Still, the upliftment of our peoples' welfare does not end with the achievement of economic prosperity and social well-being. It logically continues with a search for a higher level of maturity in our relationships, both within and among our countries.

Towards this end, ASEAN should make use of both formal and informal mechanisms. I believe it is time to effectively fulfill the provisions of the Treaty of Amity and Cooperation signed 22 years ago, particularly the call for the establishment of a formal mechanism for conflict resolution - the High Council.

To be composed of ministerial level representatives from the High Contracting Parties, the High Council will address existing disputes or situations which are inimical to regional peace and harmony.

I am pleased to note that the drawing up of rules and procedures for the operation of the High Council is included in the Hanoi Plan of Action.

Conflicts and issues that could impinge on the peace, security and stability of our region still abound.

One such issue is the South China Sea. All mechanisms, whether formal or informal, should be employed to resolve this and like issues.

It is also important to achieve the vision of an ASEAN community of caring societies. Where nations are governed with the consent and greater participation of the people. Where the welfare and dignity of the human person are upheld. Where the good of the community is championed.

We should be confident and open with one another, so that we may communicate freely, resolve our common concerns, and strengthen the ties of amity and partnership.

Our diversity is our wealth. Our plural cultures are our resource. These are our advantages. Let us use them to deepen ASEAN integration. Let us use them to sharpen our regional consciousness. Let us use them to realize the full potential of our brotherhood as Southeast Asians.

Closing Remarks,

Your Majesty and Your Excellencies,
Distinguished guests,
Ladies and gentlemen,

The challenge of the new century has been set. ASEAN must raise its credibility through strengthened and enhanced approaches to all areas of cooperation. We should deepen our efforts to enhance the substance of our collective participation in the international arena. To do so would be to advance to greater heights of cohesion, openness, security and prosperity.