TOKYO : Japan continues to play a vital role in the development of the 10-member Association of Southeast Asian Nations (Asean) and the Asia-Pacific region despite the emergence of China and India.

"Southeast Asia without Japan is like breathing without oxygen because of the capital, technology and innovation it brings the region," said Surin Pitsuwan, secretary-general of Asean at a recent seminar in Tokyo.

Japan has been vital to the region's development through its foreign direct investment and various aid and soft loans it provides.

Dr Surin said 42% of Japanese outbound investment in Asia goes to Asean member countries and nearly 60% of that amount ends up in Thailand and Singapore, making Japan the largest foreign investor in both.

"Japan cannot lose its connectivity to a region that transports its goods and services to the wider world," he said. "So the growth and development of Southeast Asia is extremely critical to your own well-being and growth in Japan."

Short-term events such as the political protests in Thailand should not deter investors from taking a long-term view of the region and appreciating its unimaginable growth rates. Asean growth from 2003 to 2009 was astounding.

"We believe our growth in the past 30 years reflects in no small part the contribution from Japanese investment and industry. The group's GDP in 2003 was $718 billion, while in 2009 it was $1.5 trillion," he said.

"Asean trade in 2003 was $824 million, but by 2008 it stood at $1.7 trillion.

"A major reason is that your factories are being transferred to Southeast Asia and your medium and small industries are relocating there," he told his Japanese audience.

Other leaders present at the event ranging from Singapore Minister Mentor Lee Kuan Yew to the Deputy Prime Minister of Vietnam, Nguyen Thien Nhan, agreed that Japan is fuelling growth in Southeast Asia.

"I for one would like our 'special relationship' to sink into the hearts and minds of the Japanese investors, academics, politicians and the public. This relationship should not be a political issue as both sides benefit from this relationship," added Dr Surin.

Every $1 rise in the GDP of each Southeast Asian nation results in Japanese exports into Asean gaining $0.06, he noted.

"Growth in East Asia is impressive and gives comfort and confidence to the rest of the world," he said.

Therefore, he said it was important for Southeast Asia to be able to take care of itself and grow at the same time as the major world economies depend on the region.

Most economists predict Southeast Asia will record impressive growth this year and in the near future.

The average growth of the region is expected to be in a range between 4.9% and 6.5% for each of the 10 countries as some will grow faster than others.

In Singapore, the economy is very dependent on trade, logistics and financial transactions, and these are all picking up in Asia. Indonesia, the region's largest country by population, will certainly grow faster than 6%, as will Malaysia, and Vietnam, he said.

Even a politically unstable country such as Thailand is expected to grow by 4.5% to 5%, he added.