KUALA LUMPUR - GLOBAL financial institutions are proving to be impotent in dealing with crises such as rising food and fuel prices, and it is up to Asia as the emerging centre of world power to take the lead in finding solutions, business leaders said yesterday.

The comments came at the annual World Economic Forum on East Asia, a high-profile gathering of business and government leaders, in Kuala Lumpur.

As economic clout drifts away from the United States and Europe to Asia, the region must spearhead the resolution of economic crises, said former Indian finance minister Yashwant Sinha.

'I believe that the international institutions we have at the moment - including the World Trade Organisation - are woefully inadequate in dealing with the global challenges,' said Mr Sinha.

He highlighted record-high crude oil prices, which hit nearly US$140 (S$192) last week.

He also accused the International Monetary Fund of practising double-standards, citing the example of the crisis in the world stock markets stemming from the sub-prime mortgage debacle in the United States.

'There is a major regulatory failing in the US. What is the IMF doing about the US? Nothing,' said Mr Sinha, adding that had the crisis occurred anywhere in Asia or Latin America, a 'huge team' from the IMF would have descended with advice.

Rapid hikes in the prices of rice and other agriculture products have also set off riots and protests from Africa to Asia, and elevated fears of a global food crisis.

Mr Sinha called on Asian countries to work together to establish a global institution that could respond better to such crises.

'I would say that this is where there is an opportunity for Asia,' he said. 'We must start writing the rules of the game.'

Japanese Minister of Financial Services and Administrative Reforms Yoshimi Watanabe agreed that Asian countries must help one another in dealing with crises because the US can no longer be expected to be 'the locomotive of the global economy'.

Lord Peter Levene, chairman of London-based insurance giant Lloyd's, noted that the shift in the world economy 'has been dramatic'.

'If you are travelling in Europe and the United States, there is a feeling of doom and gloom,' he said. 'Here, you step off the plane, and it is the opposite. This is the right place to be at the moment.'

Still, Asian governments are confronted with a wide range of risks, he said, noting that China is spending immense time and expense to deal with natural disasters and other threats.

Nevertheless, others such as Mr Peter Brabeck-Letmathe, chairman of the Swiss food and drinks giant Nestle, felt confidence in Asia's role as a global leader.

'Up to very recently, the (Asian) region was a follower in the global agenda,' he said. 'This is the first time the region is becoming a leader.'

ASSOCIATED PRESS