Southeast Asia

What’s really important here is that, in contrast to [Shinzo Abe's] previous administration, he’s decided not to visit China. The preference is a robust relation with the U.S. That’s a priority, but Southeast Asia is going to be a very important partner given the relationship with China is so rocky.

The main risk for the IMF is that it comes to be seen as less relevant to the region [Southeast Asia], both in terms of the advice it has to offer and in its role as provider of a financial safety net.

It is remarkable that the three largest economies in East Asia have not moved sooner in negotiating an FTA, but have instead developed their own FTA networks by negotiating with countries in Southeast Asia or outside the region. I think it is important to note that this is not because of lack of interest. For example, for several years now surveys of Japanese corporations have shown that the most attractive country to embark on an FTA negotiation is China. This is understandable given the large flows of investment and trade between the two countries, and the fact that the Japanese business community believes that an FTA can further enhance their conditions of operation in China.

[The Myanmar government] is making progress across the board on the political front, though on the social and economic fronts things are going slowly. But I don’t know of anybody who expected them to make the progress that they have at this point.