TOKYO - JAPAN's beleaguered prime minister suffered fresh embarrassment on Thursday when a popular weekly magazine accused a member of his cabinet of having an affair with a married woman.

Deputy Chief Cabinet Secretary Yoshitada Konoike, who is also married, denied having an affair with the woman, but said she had visited him on several occasions at his government housing compound.

BANGKOK - ASIA'S economies must work closely together and not treat each other as rivals if they hope to weather the global economic downturn, United Nations experts said on Thursday.

Presenting the UN's annual world economic report to media in Bangkok, senior adviser Raj Kumar said Asia must wean itself off a reliance of trade with industrialised countries and pool resources.

BANGKOK - THE Bank of Thailand on Thursday predicted that up to 1.07 million people could lose their jobs if the Thai economy registers zero growth this year.

Amara Sriphayak, the central bank's senior director for domestic economy, said the Thai economy in 2009 will be affected by the global economic crisis because the country cannot rely on its export partners.

MORE Singapore companies would consider freezing salaries rather than axing staff when trying to deal with the financial crisis.

The approach from firms here differs from that of other Asia Pacific nations, according to a survey conducted last year by global consulting firm Watson Wyatt.