Kuala Lumpur: ASEAN finance ministers will meet here next week amid a sense of urgency to deepen economic integration and enhance financial resilience as the global trade war erupts, no thanks to debilitating tariffs imposed by the United States.
According to BERNAMA News Agency, Malaysia’s chairmanship of the 12th ASEAN Finance Ministers and Central Bank Governors’ Meeting (AFMGM) on Wednesday has taken on added significance against the backdrop of global inflation threats. Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim and Finance Minister II Datuk Seri Amir Hamzah Azizan, as chair of ASEAN and AFMGM respectively, are tasked with guiding the region through these challenging times.
In chairing a series of preparatory finance meetings beginning tomorrow, Malaysia aims to underscore the importance of expanding financial access and strengthening financial mechanisms to support fair and sustainable economic development via AFMGM. The call to integrate financial systems is urgent, facilitating regional trade and investments to boost Southeast Asia’s economic independence.
The ASEAN region, as the world’s fifth-largest economic bloc with a GDP of RM3.8 trillion in 2023 and a population of 677 million, faces significant challenges. The bloc must mitigate the adverse effects of US President Donald Trump’s tariffs, which impact 168 countries, including ASEAN members. Tariffs have hit Cambodia, Laos, Vietnam, and Myanmar particularly hard, while other members like Thailand, Indonesia, Brunei, Malaysia, the Philippines, and Singapore face varying rates.
The AFMGM, hosted at the Kuala Lumpur Convention Centre, will gather 300 delegates, including ASEAN finance ministers, central bank governors, international financial institution officials, and private sector representatives. The event will feature business conferences, exhibitions, and meetings with dialogue partners China, Japan, and South Korea.
China’s high tariff rates and its retaliatory measures have intensified the trade war with the US. The trilateral meeting with China, Japan, and South Korea is crucial for exploring cooperation to strengthen economic linkages with ASEAN, reminiscent of the ASEAN+3 initiative established during the 1997 Asian financial crisis.
Timor-Leste, aspiring for ASEAN membership, will also participate in the event as an observer. Malaysia’s three priority economic deliverables-digital economy, sustainable financing, and inclusive development-will be key discussion points at AFMGM. The ASEAN Power Grid and regional payment systems are also on the agenda, emphasizing the need for swift progress in these areas.
The outcome of the AFMGM, chaired by Malaysia, will be closely watched given the current economic uncertainties. ASEAN’s 10 member states-Malaysia, Indonesia, the Philippines, Singapore, Thailand, Brunei, Vietnam, Laos, Myanmar, and Cambodia-are collectively navigating this complex landscape.