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Terrorism threatens Asian economies

The rapid economic ascent of China and India is fuelling Asia?s growth, but Islamic terrorism remains a threat to stability in the region, Singapore?s leader has said. At a business conference yesterday, Prime Minister Lee Hsien Loong stated ?one threat to Asia?s future growth and stability is Islamist terrorism?.

?The regional governments have arrested many key leaders of Jemaah Islamiyah, a terrorist group affiliated to al-Qaida. But we cannot be complacent,? he said. ?The JI may be weakened, but they remain a dangerous threat, with fanatical and skilled terrorists still on the loose, in touch with one another and eager to die for their cause.?

Lee acknowledged that the rise in oil prices and the disruption to global energy supplies caused by Hurricane Katrina in the US have had a ?dampening effect on the (Asian) region?, but said prospects were good. ?One main reason for optimism is the rapid emergence of China and India. These are twin engines fuelling Asia?s growth,? he said. ?As China continues to open up its economy, it will create more opportunities for the rest of Asia and indeed the world.?