SINGAPORE – Amid inflation and global economic uncertainty, Asean remains a bright spot with its robust economic growth, the region’s finance ministers said in a joint statement on Friday.
Ministers, including Deputy Prime Minister and Finance Minister Lawrence Wong, met on Friday for the 10th Asean Finance Ministers’ and Central Bank Governors’ Meeting in Jakarta, Indonesia.
They had discussions on four major themes – finance and health cooperation, food security, local currency transactions and regional payment connectivity.
The ministers noted that Asean’s robust economic growth is supported by resilient domestic demand and the continued recovery of tourism. But the region needs to stay vigilant as the global economic outlook remains uncertain.
The statement said: “Inflation is expected to remain high in several Asean member states due to elevated input prices, increased demand for services and continued currency pressures.
“The situation underscores the importance of strengthening Asean’s macroeconomic policy mix to enable member states to use all available tools to ensure the stability of our economies.”
The meeting also touched on global challenges, such as rising geopolitical tensions and slower-than-expected responses to climate change, that could affect Asean states.
The statement said: “(These issues) could exacerbate global fragmentation, which could hamper global trade and investment. Food and energy security issues remain critical and require well-coordinated policy actions.”
The ministers said they were pleased with the expansion of cross-border digital financial services, such as the Singapore-Malaysia QR payment linkage that was launched in March. This initiative lets customers of participating financial institutions make retail payments in both nations by scanning Nets and DuitNow QR codes.
The ministers added that they look forward to having such payment linkages between other Asean member states in future.
In a Facebook post on Friday, DPM Wong said Asean will need to do more to integrate its economies, and make trade and investments in the region less restrictive.
He said: “I had good discussions with fellow Asean finance ministers and central bank governors today on how we can advance our ideas for a more resilient and sustainable future for the region.”
Mr Wong also highlighted his interactions with ministers including Brunei’s Minister of Finance and Economy II Mohd Amin Liew Abdullah, Vietnam’s Vice-Minister of Finance Vo Thanh Hung, Philippine Finance Secretary Benjamin Diokno and Laos’ Finance Minister Santiphab Phomvihane.
Laos will take over the Asean chairmanship in 2024 from Indonesia.
