Speaking at a forum in Singapore, the country's Finance Minister Tharman Shanmugaratnam said Japan's nuclear crisis could hurt consumer and business confidence.
"Confidence is affected in a different way from a one-off natural disaster," said Tharman, tipped to be the next head of the International Monetary Fund's International Monetary and Financial Committee.
Separately, Citigroup said that disruption to global manufacturing from Japan's earthquake "is more serious than earlier thought."
"We could see production of goods reliant on Japanese inputs without sufficient inventories temporarily stall, such as electronics, autos and shipbuilding," Citi economists Johanna Chua and Brian Tan said in a note to clients.
The U.S. bank said risks to growth appear greatest in Thailand, where manufacturers rely on electronics, car and chemical components from Japan.
South Korea and Taiwan also turn to Japan for plastic and electronic components, but both also compete with Japan in many areas and may benefit from higher prices and market share gains.
Source: www.reuters.com
"Confidence is affected in a different way from a one-off natural disaster," said Tharman, tipped to be the next head of the International Monetary Fund's International Monetary and Financial Committee.
Separately, Citigroup said that disruption to global manufacturing from Japan's earthquake "is more serious than earlier thought."
"We could see production of goods reliant on Japanese inputs without sufficient inventories temporarily stall, such as electronics, autos and shipbuilding," Citi economists Johanna Chua and Brian Tan said in a note to clients.
The U.S. bank said risks to growth appear greatest in Thailand, where manufacturers rely on electronics, car and chemical components from Japan.
South Korea and Taiwan also turn to Japan for plastic and electronic components, but both also compete with Japan in many areas and may benefit from higher prices and market share gains.
Source: www.reuters.com
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