Japan vital for Asian recovery: Forum

JAKARTA (JP): The Fourth Asian Neighbors Forum's meeting held recently in Seoul, South Korea, agreed that Japan's leadership was crucial to lead East Asian countries out of the economic crisis.

"We shared the view that the recovery of the Asian economy should be led by Japan by boosting its economy and creating domestic demand, which can in turn lead to the revitalization of regional trade and investment," said the forum in its conclusion, a copy of which was made available to The Jakarta Post on Friday.

The May 8 to May 9 meeting was attended by representatives from 21 of Asia's leading business organizations, who said governments and businesses in the region must work on a protection mechanism to pinpoint areas of financial fragility.

"To this end, we concurred with the necessity of continuing reforms, prudential regulations and having a strong Asia-based institution.

We also discussed the importance of cultivating strong capital markets within the region," the forum said.

The forum called for the establishment of a regional cooperative entity with Japan, China and Korea as core members to enhance labor mobility, facilitate investment and encourage technological transfers.

The forum also said businesses in the region should enhance transparency and efficiency in line with international standards to stay competitive in the post-crisis era.

Delegations to the forum agreed to meet every year, with the 2000 meeting to be held in Japan.

Vice president of the Indonesian Chamber of Commerce and Industry Soy M. Pardede in a keynote speech during the meeting said in order to regain their former success in the post-crisis era, Asian businesses should be more transparent in policy designs and practices.

Pardede said large businesses in the region should also concentrate on core business activities instead of building extensive business networks. (jsk)