Malaysia tweaks Japan and U.S. on help for Asia

Malaysia tweaks Japan and U.S. on help for Asia

TOKYO (Reuters): Malaysia's Deputy Prime Minister Anwar Ibrahim politely tweaked Japan and the United States yesterday for not taking a more active role in helping Asia through its financial crisis.

Muting his barbs with such appellation as "very important friend" and "giant, friendly neighbors", Anwar said the United States has only recently begun a public-relations campaign to revive confidence in Asia and he accused Japan of hiding behind its own economic woes.

As for Asia itself, Anwar told a symposium during a two-day trip to Tokyo that the crisis-battered region cannot avoid the effects of the globalized financial system, but he said a "proactive stance" is needed to preserve market order, stability and predictability.

Advocates of globalization, he said without naming names, often "have a specific agenda up their designer sleeves. They extol the virtues of globalization when it serves their interest while remaining protectionist at home. The rhetoric of globalization has become a smokescreen in trade disputes increasingly invoked as leverage in the WTO (World Trade Organization) to open up markets for services."

Japan, he said, should show a firmer commitment to Asia, warning against Tokyo using its own financial problems as an excuse.

"We can't deny the fact that we appreciate the complexities in the Japanese economy, but Japan must take the lead," said Anwar, who is also finance minister and the heir apparent to Malaysia's premiership.

Japan, despite its position as a major economy in Asia, did not have a conspicuous presence there, Anwar said, adding that Japan should do more in the areas of trade, globalization, access to markets and dealing with currency turmoil.

Japan "may need to reform itself economically, politically and administratively," he said. "The fact that Japan enjoys huge trade surpluses with the region means that it has to open up its market to Asia and not just to others."

Asserting that Japan cannot remain aloof to the problems of its neighbors, Anwar told Reuters before delivering his speech that he would discuss economic measures Japan must take both domestically and regionally during his two-day visit to Tokyo, which ends on Tuesday.

He said he would discuss measures for Japan to boost domestic demand and stabilize its financial system and would urge Japan to be more active in helping other Asian nations.

Anwar met Japanese Finance Minister Hikaru Matsunaga later over dinner on Monday.

"How do you expect countries like Malaysia, Thailand, Indonesia to open their economies when you have your big, giant, friendly neighbors taking a limited option or moving in the opposite direction?" Anwar said in his speech.

Regarding the United States, Anwar said many in Asia have felt a sense of "major disappointment" that "an important trading partner and a very important friend" had until recently failed to participate actively in helping the region.

Anwar said that continued U.S. support was critical, and he issued a vague warning that perceptions of a lack of U.S. concern and understanding could be used by ultra-nationalists in the region.