On a tour of south-east Asia, Prime Minister Keizo Obuchi said that economic reforms implemented in the wake of the 1997 financial crisis would turn around the region's fortunes.

Thailand, badly hit in the crisis, was among the countries recovering faster than expected, said Mr Obuchi. Government forecasts predicted that the economy was set to repeat last year's 4% growth, after tumbling 10% in 1998.

Japan had also pumped $80bn into the region in the past two-and-a-half years.

"I'm convinced that through these efforts Asia will once again become the centre of growth of the world in the 21st century," Mr Obuchi said.

But he warned governments not to put the pursuit of economic growth above protecting their people and the environment.

Voice of Asia

Mr Obuchi visited Thailand, Laos and Cambodia in the run-up to the G8 summit in Japan later this year.

The BBC's Geraldine Carroll in Bangkok said that Mr Obuchi promised to ensure that Asian issues would get a fair hearing at the meeting of the world's industrialised nations.

The Thai Prime Minister, Chuan Leekpai, told Mr Obuchi that developing countries must have equal opportunities to compete in international trade.

Thailand, currently heading the 10-member Association of South East Asian Nations (Asean), has called for changes to the global financial system to prevent another meltdown, including monitoring global currency flows.

Mr Obuchi said Japan would do its best to address the economic disparities between south-east Asian nations.

As well as a $500m package for the region announced at last November's Asean summit, Tokyo promised to send experts to Laos to help formulate policies to bring down hyperinflation.

"Asia's prosperity and our prosperity are very closely linked. It is essential that we do everything possible to help," Mr Obuchi said.