Japan needs to go beyond domestic policies to succeed: Singapore PM

Japan needs to go beyond domestic policies and ensure a good international environment in order to succeed, Singapore Prime Minister Lee Hsien Loong said on Friday evening.

Speaking at a forum organized by an inter-agency office of the government, Lee said that Japan can "start with good relations with its neighbors, especially with China."

Japanese Prime Minister Shinzo Abe has been trying to lift the Japanese economy after two difficult decades with a strategy known as Abenomics, which consists of three "arrows" such as expansionary monetary policy, fiscal stimulus and structural reforms.

There have been signs of the mood being lifted, as the stock markets rose and the business sentiments improved. The real economy is also showing signs of improvement. Winning bid to host Olympics 2020 has given Japan another boost, Lee said.

But the key is the third arrow of structural reforms. However, this is also the most challenging part.

"It takes years, not months, to do, and even more years to show results," Lee said.

Japan also needs to look beyond its domestic policies and ensure a good international environment. It also needs to open up further to the outside world, Lee said.

He said that Singapore welcomes Japan joining the Trans-Pacific Partnership talks, which is a good sign.

Lee said that he remains positive about the future of Asian emerging economies, despite some of the individual economies having challenges. He cited the better reserve positions and multilateral initiatives like the Chiang Mai Initiative