On July 19 the Japan Federation of Economic Organizations (Keidanren) held the fifth Asian Neighbors' Forum, with participants freely ex- changing opinions over two main themes -- "Searching for a new model of Asian regional cooperation" and "The progress of globalization and cooperation among Asian business sectors."

The arguments given by those at the forum included:

* It is important for Asian nations to cooperate in stabilizing the region's currencies, and in that respect, the Chang Mai initiative set forth by the Association of Southeast Asian Nations and its three key partners for a regional currency swap arrangement is a positive development.

* Promoting the yen's globalization is welcome, but Japan should exert its leadership to encourage greater use of the yen in international transactions.

* Since there are no national borders in cyberspace, corporate executives should become consumer-oriented rather than producer-oriented. They should try to make themselves "chameleon companies" that can cater not just to certain countries, but global markets as well.

* Changes in industrial structure have given rise to the problem of mismatches in labor demand and supply. In dealing with the issue of joblessness, policymakers should put emphasis on upgrading the employability of workers. The forum was started in 1994 at the initiative of the Keidanren. The Keidanren had been holding bilateral business conferences with Asian countries and economies on a regular basis. But as discussions often spilled over from bilateral issues to regional or global matters, it invited its bilateral partners to gather for free exchanges of opinion on matters of mutual interest.

The participants at this year's meeting came from China, Taiwan, Hong Kong, Indonesia, South Korea, Malaysia, Singapore, Thailand, Vietnam and Japan. Although they do not adopt a special document or release any policy proposals, the participants are all top leaders of major private-sector economic organizations, and it is expected that the fruits of the discussions will passed on to business leaders and policymakers in their respective countries and economies.

The main purpose of the forum is to exchange opinions and build mutual trust. Since it is not a formal government-to-government gathering, management of the forum is kept as flexible as possible as a matter of practicality.

Many at the latest conference touched on the need to build a framework for regional cooperation in Asia. Recent years have witnessed the creation of a number of economic frameworks, such as the EU, NAFTA and Mercosur, but a similar framework has been lacking in East Asia. Many suggested regional cooperation should be encouraged to promote Asia's mutual interests.

We hope that closer exchanges among Asian business leaders through such occasions as the Asian Neighbors' Forum will have positive effects on the creation of Asian regional cooperation. The forum will next meet in 2001.