SINGAPORE: Inflation continues to pose a significant threat to India and other parts of Asia which could impact economic growth in the region, a Singapore minister cautioned today."While we remain sanguine about the prospects for Asian economic growth, we must equally remain vigilant towards the downside risks," S Iswaran, a Minister in the Prime Minister's office, said.
He was addressing three-day Pan Indian Institute of Technology ( IIT) Asia Pacific conference that began here.
He highlighted the concerns over rising energy costs and price shocks due to problems in the Middle-East.
The minister also pointed out the threat of Eurozone sovereign debt escalating if fundamental fiscal challenges remain unresolved.
Besides concerns over moderation of growth in China, he said inflation continues to pose a threat to India and other parts of Asia.
"These events may have a serious impact on major Asian economies and their main trade partners," Iswaran said.
He also said some Asian economies are losing the attraction of being a low-cost manufacturing centre for global markets.
Iswaran said countries like China, Vietnam, Malaysia and Thailand has started transfering labour-intensive, low-end manufacturing to less developed countries in the region.
"In this regard, Asian economies have to move away from their dependence on the low-cost manufacturing business model," he said.