ASEAN+3 explores mobilising US$4.4 trillion in pension funds to meet the region’s massive infrastructure and development financing requirements.
KUALA LUMPUR: ASEAN+3 policymakers are exploring ways to mobilise regional savings to address large and rising financing needs.
Bank Negara Malaysia deputy governor Datuk Marzunisham Omar said the region holds substantial financial resources, with pension funds alone accounting for nearly US$4.4 trillion.
“ASEAN in particular faces huge financing needs,” he stated during the 4th ASEAN+3 Economic Cooperation and Financial Stability Forum in Hong Kong.
Asian Development Bank estimates show infrastructure financing requirements in ASEAN could reach almost US$3.1 trillion by 2030.
Marzunisham emphasised the need to establish financial frameworks to channel regional savings into productive sectors.
Under Malaysia’s ASEAN Chairmanship, the focus has been on financing the ASEAN Power Grid project.
“We have brought in about 15 key investors who committed almost US$13 billion to help fund this project,” he added.
Mobilising domestic and regional resources complements efforts to enhance financial integration.
This includes developing cross-border payments, capital markets and local currency settlement frameworks.
Strengthening the regional financial safety net will further reinforce stability and confidence.
Transitioning the Chiang Mai Initiative Multilateralisation to a paid-in capital structure represents one such effort.
“I believe we need to double down on efforts for regional financial integration,” Marzunisham urged.
He stressed that trust among policymakers and central bankers is critical to drive these initiatives.
“A stronger, more integrated region will benefit all of us,” he concluded.
