May 5 (Bloomberg) -- Finance ministers from Japan, China, South Korea and Southeast Asia agreed to boost spending at home to sustain economic growth as near-record oil prices and a weaker dollar curb overseas demand.

``We reiterated our commitment to implement structural reforms as well as to take appropriate macroeconomic policy measures, including policies to promote domestic demand-driven growth,'' the ministers said in a joint statement yesterday after meeting in Istanbul.

Asian companies including Hero Honda Motors Ltd., India's biggest motorcycle maker, and Samsung Electronics Co., Asia's largest electronics maker by market value, are counting on rising sales at home to counter slowing overseas demand. South Korean exports slowed to growth of 7.7 percent in April, a government report said on May 1, from 13.5 percent in March.

The International Monetary Fund predicted on April 13 that growth will slow in most of Asia this year. It forecast growth of 4 percent in South Korea, compared with a 4.6 percent expansion last year. Growth will slow to 6.7 percent from 7.3 percent in India, and to 5.6 percent from 6.1 percent in Thailand, the IMF said.

``There's more onus on Asian countries to strengthen their domestic economies as exports slow and oil prices rise,'' said Robert Subbaraman, senior economist at Lehman Brothers Japan Inc. in Tokyo. ``To do that, they can keep the domestic policies loose, deregulate the labor market, and improve financial reform.''

Finance ministers from Japan, China, South Korea and the 10 members of the Association of Southeast Asian Nations held talks this week in Istanbul, where they are attending the annual meeting of the Asian Development Bank.

Oil Prices

``We are watching with concern on the downside risk'' arising from high oil prices, Nor Mohamed Yakcop, Malaysia's second finance minister, told reporters after yesterday's meeting. ``I'm sure all the governments in the world are looking at the higher oil prices, inflation and possibly higher interest rates, and we have to make sure we are aware of the risks and be prepared.''

Nor said the Malaysian government is ``confident'' of achieving economic growth of between 5 percent to 6 percent in 2005.

To contact the reporter on this story: Amit Prakash in Istanbul at aprakash1@bloomberg.net.

Last Updated: May 4, 2005 22:12 EDT