ASEAN member countries plus Japan, China and the Republic of Korea (ASEAN+3) have agreed to remain vigilant about negative impacts on the global monetary easing policy-stemmed region.
The countries said in a joint statement released following their meeting in India on May 3 that they are well aware that the continuing global liquidity infusion can induce risky investment, credit expansion and asset bubble.
They agreed that monetary policy should remain oriented towards domestic purposes, the statement said.
At the meeting, held on the sidelines of the Asian Development Bank (ADB)’s annual meeting, the countries also agreed to elevate the ASEAN+3 Macroeconomic Research Office (AMRO) to the status of an international organisation.
Besides, they endorsed an initiative on fostering infrastructure financing bonds development to boost infrastructure development projects in Southeast Asian nations.
Also on the sidelines of the ADB meeting, the Japan-ASEAN Finance Ministers and Central Bank Governors’ Meeting took place.
The two sides agreed with measures to strengthen financial cooperation. In particular, Japan agreed to revive bilateral currency swap agreements with Malaysia, Singapore and Thailand, and strengthen existing bilateral swap arrangements with Indonesia and the Philippines.
Tokyo suggested providing assistance for the reform of financial systems in countries including Vietnam and Myanmar, and establishing bilateral working groups with Indonesia, Malaysia, Singapore, the Philippines and Thailand with the aim of gaining a specific development in financial cooperation.
VNA
