PUTRAJAYA, MALAYSIA: Malaysia and its Asean partners have committed to setting up a US$120bil (RM420bil, S$175) fund, which will act like the Inter- national Monetary Fund and provide loans to members during an economic crisis.

The fund will become a reality by February during the Asean summit in Chiangmai, Thai- land, Foreign Minister Datuk Seri Dr Rais Yatim said.

He said the 10-member regional body's finance ministers were meeting in Singapore to discuss the proposal.

"Although there may not be a physical fund by then, all members have given their commitment to this.

"Our dialogue partners China, South Korea and Japan are also in agreement for such a fund," he said, adding that the three countries have also pledged their assistance and contribution to the fund.

He was talking to reporters after receiving credentials from the new representative of the United Nations High Commissioner for Refugees (UNHCR) to Malaysia, Paul Alan Vernon, at his office here yesterday.

Besides the fund, Dr Rais said, Asean secretary-general Surin Pitsuwan had also been directed to facilitate the appointment of a top-notch financial adviser at its secretariat in Jakarta.

"This is an earnest approach from all the members and Malaysia will give its full support," he said.

Malaysia had mooted the idea of forming an Asian Monetary Fund (AMF) during the Asian financial crisis in 1997 but the idea was shot down by some Western countries. However, the fund look set to be revived with the present economic meltdown.

On another matter, Dr Rais said Malaysia has requested the UNHCR to speed up the resettlement process of refugees into other countries as their numbers were huge.

"UNHCR lists the number of refugees in Malaysia as around 43,024, including some 13,000 Rohingyas from Myanmar. They are a sap on our national benefits like public hospitals, schools, food and utilities.

"Our country is already dealing with the burden of the large number of illegal immigrants. Between 2005 and November this year, only 12,932 refugees have been resettled," he said.