He made the comments after receiving an honorary doctorate from Japan's most prestigious private university.

'In the globalised world that we face, greater integration of our economies with the rest of the world will continue and is not reversible. That being the case, Japan, like other major economies, will have to adapt to such changes quickly,' he said in his acceptance speech at Keio University.

'It behooves Japanese youth to recognise this reality and move forward,' Mr Nathan told the audience, which comprised mainly students and faculty members of Keio.

The President, who is in Japan on a historic week-long state visit, noted that the country was able to transform itself in fundamental ways in the past, such as during the Meiji era in the late 19th century and in its post-war reconstruction after World War II.

He said that Japan will require another 'transformational change' to get out of its present economic crisis and that it will involve the joint efforts of politicians, business leaders and the nation's top universities. Young Japanese, he said, should take up the challenge to make Japan a world leader again.

'As Japan has done time and again since the Meiji era and after World War II, my call to young Japanese is to go out again into the world that is marked by technological innovations and scientific discoveries and profound change,' said Mr Nathan.

'Bring back ideas to revitalise your country and your economy and take the next economic leap that Japan must endeavour to re-establish its pre-eminence among the leading nations of Asia in the 21st century.'

Mr Nathan made the call after being conferred an honorary doctorate in media and governance by Keio's president Yuichiro Anzai.

The degree was in recognition of Mr Nathan's contributions to enhancing relations between Singapore and Japan and for helping to maintain peace and stability in the region during his very long and illustrious career.

Read the full story in Wednesday's edition of The Straits Times.