South-East Asian finance ministers said today there was no need to coordinate on the massive inflow of foreign capital into the region, which has raised fears of destabilising economies.

The "hot money" has nudged most Asian currencies higher, making their exports more expensive on the global market as the US allows the dollar to weaken and China keeps a tight rein on the yuan.

Ministers from the 10-member Association of South-East Asian Nations (Asean) meeting in Kuala Lumpur said a region-wide structure to tackle the speculative cash was not necessary at the moment.

"The issue is quite peculiar in respective countries," Malaysia's Second Finance Minister Ahmad Husni Mohamad Hanadzlah told a joint news conference at the end of the one-day meeting.

"At this juncture within Asean, we don't see it as not manageable," said the minister in comments echoed by his counterpart from the Philippines.

"Right now there is no need for that coordinated structure. Within Asean, we allow the markets to determine our exchange rates at this point, we don't see that as an issue," Philippine Finance Secretary Cesar Purisima said.

The influx of funds has also led to steep gains in stocks and property prices, which have stoked fears of "bubbles" that could later burst if the money is withdrawn quickly, and prompted individual central banks to act to cool down their markets.

"Hot money" refers to short-term speculative funds that move speedily across borders in search of quick gains, and is criticised for adding to instability in global financial markets.

According to the Washington-based Institute of International Finance (IIF), net private capital flows to emerging economies are projected to reach US$825 billion this year, or more than US$2 billion a day, up from US$581 billion in 2009.

- AFP