ASEAN Poised For Economic Shift, Political Will Crucial To Confronting Dramatic Changes – Zeti

By M.Saraswathi

KUALA LUMPUR, April 10 (Bernama) -- As the global economic landscape shifts dramatically, ASEAN stands at a critical juncture, ready to navigate the challenges ahead, but the region's success hinges on the strength of its political will and coordinated efforts, said Tan Sri Dr Zeti Akhtar Aziz.

Unlike in the past, ASEAN is now positioned from a place of strength, said the former Bank Negara Governor.

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Two decades of concerted efforts have significantly strengthened the 10-member bloc through enhanced regional economic and financial integration, along with more robust networks, she said.

This solid foundation enables it to harness its collective comparative advantages to address challenges such as excess capacity, job losses, and supply chain disruptions resulting from global shocks, she said at the Eminent Persons’ Dialogue: ‘ASEAN Financial Integration in a Multipolar World’ here on Wednesday.

Greater reliance on new technologies and artificial intelligence (AI) will also be required, coupled with the best minds that reside in ASEAN and the greater Asia, who must be mobilised to design such a coordinated transformation in the region.

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“While this vision is entirely within reach, it will, however, require political will, institutional capacity, and continued public-private collaboration. It will require investment in digital infrastructure, harmonised regulatory frameworks, and mechanisms that support financial inclusion,” she said.

Vital, she added, will be the continued commitment to regional solidarity toward building a stronger, more secure, and more prosperous region.

ASEAN, she said, must also shape, and not merely adapt to the evolving global financial architecture and environment.

“The world today is characterised by multiple centres of economic influence, and ASEAN must navigate this shifting landscape with confidence and agility to adjust.

“While recognising these realities, the region should actively shape international financial and trade norms to ensure ASEAN’s perspectives and priorities are reflected in global decision-making,” she added.

In her address, Zeti also cited the Chiang Mai Initiative Multilateralisation (CMIM) as a hallmark of regional cooperation – an assertion of regional solidarity and greater financial self-reliance – signalling that the region has the capacity and political will to stand together in times of stress.

She said the CMIM has further fortified the region’s financial safety net to provide crucial liquidity support during turbulent times and security during tranquil periods. “This mechanism reinforces our collective ability to respond swiftly to external shocks and to safeguard our macroeconomic and financial stability.”

The CMIM involves the 10 ASEAN member countries, as well as China, Japan, and South Korea, forming the ASEAN+3 regional financial safety net.

It was established in May 2000 as the Chiang Mai Initiative (CMI) in response to the 1997/98 Asian Financial Crisis. It was later multilateralised and became the CMIM in 2010, with the total funding size increased to US$240 billion from US$120 billion previously.

-- BERNAMA