Speech by Prime Minister Mr Goh Chok Tong at the dinner hosted honour of His Excellency Prime Minister of the Lao People's Democratic Republic and Mrs Khamla Keoubounphanh, on 12 August 1998

Your Excellency

Prime Minister Sisavath Keobounphanh

Mrs Khamla Keobounphanh

Excellencies

Distinguished Guests

Ladies and Gentlemen

On behalf of the Government and people of Singapore, I extend a warm welcome to you, Mr Prime Minister, your wife and members of your distinguished delegation. As this is your first visit to Singapore, I hope that you will take some time off to explore our city state.

I am happy that relations between our countries have grown over the last few years. The regular high-level exchange of visits has contributed significantly to the growing strength in bilateral relations. Our senior officials have also met regularly to discuss co-operation over a wide range of areas. Your current visit will raise bilateral relations to a higher level and provide the impetus for further expansion in our bilateral co-operation.

Our efforts to spur bilateral relations, particularly in the economic sphere, have been bolstered by your governmentA?s pean pang mai (or "renovation policy") and pro-market reforms to improve business conditions in Laos. This policy, when sustained, will bear fruit for Laos.

I am pleased to note the rigorous efforts in building bilateral co-operation. Since 1994, 385 officials from Laos have undergone training in Singapore in various areas, ranging from training in English language to management consultancy to information technology. The interaction between our officials will contribute to the building of goodwill between our countries and peoples.

Mr Prime Minister

When I visited Laos in March 1997, South East Asia was full of optimism and confidence. East Asia was poised for an economic take-off. Laos was also about to become a member of ASEAN.

However, the situation today has changed dramatically. The region is in the grips of a financial and economic crisis. Singapore too has been affected. In many other countries, the economic crisis has weakened their political and social fabric. Externally, the crisis has reduced the international prestige of this region.

Notwithstanding these setbacks, Singapore remains positive about the long-term prospects of the region. Our regionA?s inherent strengths and resilience are widely acknowledged. We can turn the financial crisis to advantage, by confronting difficult economic issues and introducing much-needed measures to reform and strengthen our economic and legal framework. The regional crisis also shows how interdependent and interconnected our economies are and how important it is for us to work together to overcome it.

To restore confidence in the ASEAN economies, the realisation of AFTA has become even more urgent. Advancing the AFTA time table will send a powerful signal to international investors of the determination of ASEAN countries to open their economies to trade and investments.

ASEAN is currently facing many serious challenges. While ASEAN should develop new responses to these challenges, we must not unwittingly undermine the core principles that have kept ASEAN united through the past 31 years. It is at such times of great uncertainty that we should together keep faith with ASEANA?s core principles.

As the Chairman of the ASEAN Standing Committee, Singapore hopes to keep ASEAN on course, drawing strength from the founding principles of ASEAN.

Therefore, I am very encouraged to learn that within the short space of 12 months since its admission into ASEAN, Laos has demonstrated a keen understanding of the ASEAN mechanisms and processes. Singapore looks forward to working closely with Laos in sustaining and strengthening the resilience of ASEAN in the difficult times ahead.

Excellencies

Distinguished Guests

Ladies and Gentlemen

May I invite you to rise and join me in a toast to the good health and well being of Prime Minister Sisavath Keobounphanh and Mrs Khamla, to the continued peace and prosperity of the Lao people, and to the warm and enduring friendship between the Republic of Singapore and the Lao PeopleA?s Democratic Republic.

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