Asia needs tough economic steps: Lee<\/p>\n
SINGAPORE (Reuters): Troubled Asian economies are only
\nprolonging the agony if they fail to take tough measures needed
\nto correct fundamental problems, Singapore Senior Minister Lee
\nKuan Yew said.<\/p>\n
Delaying reform means \"dragging out the misery\" he told
\nReuters in an interview yesterday.<\/p>\n
Better he said, \"if you face it head on, and bite the bullet,
\nswallow the bitter medicine, find any metaphor you like but take
\nthe pain and take it quickly. Get it over with\".<\/p>\n
For similar reasons, an Asia fund aimed at providing financial
\nsupport to countries hard hit by economic problems must be linked
\nto the International Monetary Fund (IMF), he added.<\/p>\n
\"The Asia fund as a supplement to the IMF, to back up the IMF,
\nand the rigors that the IMF must impose, that's good. But the
\nAsia fund in place of the IMF, I don't know what the others
\nthink, but my Prime Minister (Goh Chok Tong) says 'count me
\nout',\" he said.<\/p>\n
\"Let me put it in a very succinct way. I'd rather the IMF tell
\nthe Thais what they have to do than me and my ASEAN neighbors
\nclubbing together, putting up US$17 billion and telling the Thais
\nif you don't do this we won't give you $17 billion. We won't be
\nfriends for a very long time,\" he said.<\/p>\n
The Association of South East Asian Nations (ASEAN) groups
\nBrunei, Myanmar, Indonesia, Laos, Malaysia, the Philippines,
\nSingapore, Thailand and Vietnam.<\/p>\n
Lee said financial aid, no matter how massive, was meaningless
\nif countries did not make needed major reforms.<\/p>\n
\"It's meaningless because without the fundamental reforms in
\nfinancial structures, banking, stock market supervision,
\ndisclosures, transparency and getting the macro-economic policies
\nright, you can throw in a hundred billion, it's down the tube,\"
\nhe said.<\/p>\n
Lee said Asia's economic woes would have an impact on
\nSingapore and its economic growth, but it would be limited.<\/p>\n
\"We'll have less tourists, we'll have less trade, we'll have
\nless investments, and less return on investments\" as the extra
\nstimulus which comes from neighbors' growth is lost, he said.<\/p>\n
\"From about seven or eight (percent annual growth) we'll go
\ndown to five or six. I don't think it will be as bad. Maybe one
\npercent will be lost, depending on how they recover.\"<\/p>\n
\"I don't think it will be immediate. It's going to be six to
\n18 to 24 months from now,\" Lee said.<\/p>\n
He noted Singapore experienced strong growth rates before
\nregional markets opened up, thanks to its trade with
\nindustrialized countries, and was a manufacturing center for
\nnumerous multi-national corporations selling worldwide.<\/p>\n
Earlier on Monday, Singapore reported a 10.2 percent year-on-
\nyear economic growth rate in the third quarter, and projected
\n1997 growth at about seven percent.<\/p>\n
Officials said next year's growth rate was expected to
\nmoderate and gave a preliminary growth forecast for 1998 of
\nbetween five and seven percent.<\/p>\n
The relative strength of the Singapore dollar, which has
\nfallen far less against the U.S. currency than some other Asian
\ncurrencies, would have a negative impact, Lee said.<\/p>",
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