KUALA LUMPUR: There is no need for a single currency in the initial stage of realisation of the ASEAN Economic Community, says former Indonesian Finance Minister, Dr Muhamad Chatib Basri today.

Speaking to reporters here today, Muhamad Chatib said implementation of a the single currency would not be easy, in light of the diverse economic structure and development levels of the 10 ASEAN member states.

He was responding to a question on lessons learnt from the integration of European economies.

"A single currency is probably the issue we really have to think carefully over. You can still have the integration and your own currencies," he said.

Muhamad Chatib said this after the first KL Debate, organised by Bank Negara Malaysia (BNM) and the Official Monetary and Financial Institutions Forum today.

BNM Governor Tan Sri Dr Zeti Akhtar Aziz also attended the session.

Muhamad Chatib said it was very important to incentivise each ASEAN country to be involved in ASEAN trade agreements to smoothen the integration process.

"We should integrate. We should be ready for this and if we continue to say we are not ready, then we delay and prolong the process," he added.

Besides Muhamad Chatib, the panellists included European Investment Bank permanent representative Ben Knapen and Law Professor at Hong Kong University, Chin Leng Lim in debating on "Regional Integration and Global Integration: Is there a conflict?"

The debate was held in conjunction with the 19th ASEAN Finance Ministers Meeting.

Meanwhile, Knapen said regional integration could allow for a speedier cohesion, which would create social economic benefits for the poor if the environment is made condusive for social economic development.

He said the social economic development includes the infrastructure, environment and foremost education, if the region is moving towards innovation.

"There is a clear advantage when it comes to regional integration as it can enhance growth by reaching out to a larger market," he said.

Knapen, who was also the State Secretary for Foreign Affairs of the Dutch government, said the ASEAN region must learn from the impact of regional integration in Europe in terms of the free movement of people.

"If you decide for this free movement of people into a hugely diverging economies, you must be careful because it can be disruptive.

"You have to do it gradually, manage it in a way that it does not underminie society and small and medium companies, in less developed countries," he added.

Nevertheless, he said regional cooperation if successful, would not only enhance growth, wealth and position of ASEAN countries but also improve the influence of the regional organisation in the world. - Bernama