Business leaders optimistic on prospect of Asian economy

Business leaders optimistic on prospect of Asian economy

Karl Malakunas , Agence France-Presse, Singapore

Asia's economies are set to roar back from a dark 2003 that
was plagued by terrorism, war, a health epidemic and global trade
failures, business leaders told the opening of the World Economic
Forum's (WEF's) East Asia summit here on Sunday.

"This idea of a dynamic renewal is very clear after a very
difficult year," WEF Asia director Frank-Jurgen Richter said in
views that were echoed by many other participants of the
influential summit that has attracted 800 senior business and
political figures.

Richter said in his opening address to the forum the terrorism
attacks in Bali that killed 202 people exactly one year ago, the
war on Iraq and the Severe Acute Respiratory Syndrome (SARS)
epidemic had all severely impacted businesses in Asia.

He said the failure of the World Trade Organization's (WTO's)
global trade talks in Cancun, Mexico last month had also cast a
shadow over Asia's economies.

"But now everything is on the move and Asia is looking ahead
with a lot of optimism," he said.

Richter cited last week's Association of Southeast Asian
Nations (ASEAN) summit in Bali, which committed the 10-nation
body and China, Japan, South Korea and India to closer economic
integration, as one of the greatest reasons for hope.

"We have just heard from the ASEAN leaders in Bali... a great
vision, a grand vision," he said.

Other participants to the forum agreed with Richter's upbeat
assessment.

"I continue to feel that there's a lot of optimism in this
region as we move forward," the president of Malaysian oil giant
Petronas, Hassan Marican, told the opening session.

"Optimism not only on the economic front but optimism also in
the development and deepening of regional co-operation in both
the political and social-cultural side of our lives.

"I feel very optimistic that this region, as it gets
organized, as more and more cross border participation in the
political and business front continues, will become a much
stronger region and will be able to play a much stronger role in
the shaping of global change."

The chairman of the Singapore Business Federation and a co-
chair of the summit, Stephen Lee, was equally optimistic.

"The past few months' sentiment has improved significantly as
reflected in the stock markets," Lee said, adding he expected
economic growth to average between three and five percent in Asia
over the next 12 months.

Lee said even a feared second outbreak of SARS, following the
first that killed more than 800 people around the globe with most
of the victims in East Asia, would not have the same devastating
impact on the region's economies.

"The positive side is SARS was a learning experience. Business
had to react very quickly... medically we also learnt quite a
bit," he said.

"So as a result if there is a recovery of SARS... I think the
region -- Taiwan, China, Hong Kong -- will be much better
prepared. I think this time there will not be the widespread
panic."