He was speaking during a dialogue with Japan Foundation president Kazuo Ogoura on the final day of the two-day Future Of Asia conference organised by the influential Nikkei business daily.

For Asian economies to switch from low consumption, high savings and high investments to become a high consumption society like the United States 'will be a long process of decades', said Mr Lee.

Speaking at a dinner for conference participants on Thursday night, Japanese Prime Minister Taro Aso had called on Asian states, which were dependent on exports for growth, to change to economies led by domestic demand in order to overcome the current economic crisis.

But the Minister Mentor said: 'I do not believe that in the short term there can be any change in a consumer-led recovery of these Asian economies.'

Even if Asians were to increase their consumption in the long term, as they become more confident of the future, they are unlikely to ever equal the US, whose gross domestic product is 70 per cent dependent on consumption, he added.

'The Americans believe tomorrow will always be a sunny day. The Chinese always believe tomorrow there may be an earthquake. So do the Japanese. So let's put something by.'

Because the world is already globalised, most countries, including Japan and Germany, will depend on an American economic recovery for their own economies to pick up, he said.

'When the American economy goes up by 1 per cent, I think the wheels will start turning again,' he added.

But he pointed out that two countries - China and India - could grow even though the US economy was down.

Both these countries, he said, have huge populations, they are in need of infrastructure and there is strong demand by their consumers for durable goods such as refrigerators and air conditioners, all of which should help to keep their domestic industries humming during the current crisis.

Commenting on another point raised by Mr Aso concerning the desirability of reducing the economic disparities in Asia, Mr Lee said it was up to each government to be responsible for its own citizens.

'If tomorrow, Singapore becomes bankrupt, is the rest of Asia going to rescue it?' he asked.

Mr Lee said it was fortunate that Singapore has accumulated huge reserves that should see it through this recession, even if it were to last five years.

'Nobody will be hungry. Yes, there will be unemployment but nobody will die of starvation,' he said.

Asked for his view on what China will be like in the long term, Mr Lee said he knew the Chinese would like their country to become the equal of countries such as the US and Japan, prosperous and well-equipped with health services and other things common to modern states.

He said that while the coastal areas of China might be able to achieve that goal within 30 years, and the areas around them within 40 years, it would be difficult for other parts of the country, such as the semi-desert areas in the north-west, where the environment and climate are hostile.

He described how he was once taken to the populous province of Henan to view the Yellow River.

'I didn't see a river. I saw a dry bed. Everybody has taken water out of the river. Over-utilisation has completely drained out the water. So whatever they do, they cannot make that as prosperous as the coastal provinces.'

As in previous years, Mr Lee was easily the most popular speaker at the symposium, which also saw the participation of many other political and business leaders from the region.

Mr Lee, who arrived in Japan on Tuesday, is due to leave for China today.

-end of ST article