PRIME Minister Lee Hsien Loong on Sunday joined Asean leaders in reaffirming the need to ensure free flow of goods, services and investments and to facilitate movement of labour, as the two-day Asean Summit in Thailand drew to a close.

Speaking to Singapore media on the sidelines, he called protectionism 'counterproductive' and urged speedier integration of the region's economies.

Leaders of the 10 Asean countries on Friday issued the group's first response to the global financial crisis, in the form of a statement pledging decisive measures to restore market confidence and ensure continued financial stability.

In particular they welcomed a proposal to expand a currency swap fund, the Chiangmai Initiative, to bolster regional currencies.

PM Lee reiterated Singapore's support for the fund, saying it could 'contribute to the stability of the region' if countries run into problems with their currencies.