Asian economies ‘on the move:’ Singapore PM

CHICAGO – Asian economies are “on the move” after weathering the global economic downturn, but require more liberalization and reforms, Singapore’s Prime Minister Lee Hsien Loong said Thursday.

“We see Asia on the move,” Lee said in a speech to the Chicago Council on Global Relations. “Barring a conflict or war, for at least several more decades Asia will continue to grow.”

Lee acknowledged that the region is facing political instability, most notably in Thailand, Malaysia, Indonesia and the Philippines.

He noted that the region’s nations are faced with the challenge of multi-racial, multi-religious and multi-lingual societies and wished his neighbors “success” in resolving tensions.

Deepening economic ties both regionally and globally and expanding free trade are key to the region’s development and security, he said.

“It’s important for Asia to have a balance of players where the interests of all parties, big and small, are taken into account not just for economic reasons but to maintain a balance of power and foster regional security,” Lee said.

China is “assiduous and skillful in making friends” but is also “firm in defending its national interests,” Lee said, noting that China is “still finding the right tone to engage the international community.”

“Now that the crisis is over, it’s really in China’s own interest… to have more flexibility in its exchange rate to avoid a showdown not only with America but with all its global partners,” he added.

The key to China’s long-term growth is to develop its middle class by moving people off the land and providing them with good jobs in the cities and an adequate social safety net, he said.

India is “well placed to be another major growth engine” but it will require “difficult liberalization and reforms” and “massive infrastructure investments,” the prime minister said.

“It is an environment that many Western firms would be more comfortable in, but it needs to be more open,” he added.

Lee said Vietnam is also “taking off” with “a lot of energy and drive,” but warned that “their bureaucracy is a hindrance and corruption is a serious problem.” –Agence France-Presse