25th Pan Pacific Congress in Bali Indonesia on 27 September 2010
Distinguished Guests,
Chief Delegates,
Ladies and Gentlemen,
Two years ago, for the 24th Pan Pacific Congress, held in Seoul, we were in the immediate shadows of the collapse of Lehman Brothers, the watershed event for the Global Financial Crisis.
Despite the fact, then, that the crisis was, in fact, coming to a head with the earlier outbreak of the sub prime mortgage crisis in August 2007, in Seoul, we did not place a lot of importance to the Lehman event. The said event in fact was only a week before the 24th Pan Pacific Congress. It was only much later, after the event that the enormity of the event slowly dawned on the world at large.
The United States in particular and the world in general was staring, in 2008, at a possible economic depression greater than the great depression of the 1930’s.
But governments acted quickly and with the extraordinary Keynesian pump priming the crisis was averted. But two years since then the imbalances that existed have still not been corrected and the root causes still elusive. But we know this: Real estate played a complicit role in this crisis (and for many other crisis in the past) and we must be keenly aware of the proximity, of the real estate market and the valuation professionals.
Some may say that is the real estate failure valuers are also to blame. Perhaps, but I think that valuations must be better recognised in the system and given greater importance for the needed taming of the extremities of the real estate cycles. This world leads to a better management and control of financial crises and ensure financial stability.
The Valuation Profession must, today, sieze the moment and march forward and plan a major role in the coming redesign of the global financial architecture.
The Pan Pacific Congress, being one of the foremost valuers event could work hand in hand with valuation organisation around the globe and in this respect perhaps it is timely for the Pan Pacific Congress to anchor a Permanent Secretariat and have a formal organisational structure.
In the meanwhile for this so well organised 25th Pan Pacific Congress, as we have seen so far, in this enchanting island of Bali, I say, as Chief Delegate of Malaysia, many thanks to Indonesia and to the hardworking and very talented organising committee.
Despite the fact, then, that the crisis was, in fact, coming to a head with the earlier outbreak of the sub prime mortgage crisis in August 2007, in Seoul, we did not place a lot of importance to the Lehman event. The said event in fact was only a week before the 24th Pan Pacific Congress. It was only much later, after the event that the enormity of the event slowly dawned on the world at large.
The United States in particular and the world in general was staring, in 2008, at a possible economic depression greater than the great depression of the 1930’s.
But governments acted quickly and with the extraordinary Keynesian pump priming the crisis was averted. But two years since then the imbalances that existed have still not been corrected and the root causes still elusive. But we know this: Real estate played a complicit role in this crisis (and for many other crisis in the past) and we must be keenly aware of the proximity, of the real estate market and the valuation professionals.
Some may say that is the real estate failure valuers are also to blame. Perhaps, but I think that valuations must be better recognised in the system and given greater importance for the needed taming of the extremities of the real estate cycles. This world leads to a better management and control of financial crises and ensure financial stability.
The Valuation Profession must, today, sieze the moment and march forward and plan a major role in the coming redesign of the global financial architecture.
The Pan Pacific Congress, being one of the foremost valuers event could work hand in hand with valuation organisation around the globe and in this respect perhaps it is timely for the Pan Pacific Congress to anchor a Permanent Secretariat and have a formal organisational structure.
In the meanwhile for this so well organised 25th Pan Pacific Congress, as we have seen so far, in this enchanting island of Bali, I say, as Chief Delegate of Malaysia, many thanks to Indonesia and to the hardworking and very talented organising committee.
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