ASEAN commits to goals amid rising protectionism

CEBU, Philippines – Association of Southeast Asian Nations (ASEAN) finance ministers and central bank governors reaffirmed their commitment to boost economic growth and stability in the region amid the risks in the global economy emanating from the rising protectionism in the US and other parts of the world.

The ministers also committed to remain steadfast in pursuing ASEAN’s goals to achieve a highly integrated and cohesive economy that is competitive and innovative with enhanced connectivity and sectoral cooperation amid the rise of protectionism and geopolitical developments that could derail the global economy's recovery.

“As such, we shall continue to promote economic growth, financial integration, strengthen financial stability, implement appropriate monetary, fiscal and macroprudential policies in our jurisdictions, and intensify financial cooperation to further advance our region’s resilience,” the ministers said in a statement issued at the end of their 3rd joint meeting in Mactan, Cebu late Friday.

The finance and central bank chiefs also vowed to deepen regional financial cooperation to realize an ASEAN Economic Community 2025, and pursue the creation of an interconnected, inclusive and resilient regional capital market.

They also initiated a “financial inclusion initiative” to deliver more financial products and services to under-served communities within the ASEAN and reaffirmed the goal to liberalize progressive financial services.

The finance and central bank chiefs also noted the sustained expansion of the ASEAN economy at 4.6 percent in 2016 amid global uncertainties, and stressed that domestic demand will continue to be a key driver to regional growth, while structural reforms, public spending and fiscal stimulus will enhance investments in the region.

But despite these positive trends, they also cited “risks” emerging from a rising tendency toward protectionism, the normalization of policy rates, and “geopolitical developments, which could derail the recovery of the global economy.”

“We urged international financial institutions to be vigilant as guardians of the open multilateral system. The normalisation of policy rates may also increase volatilities in our economies. Despite this, we remain committed to promoting closer trade and investment ties between our economies. We recognised the need to ensure that the benefits of growth are shared equitably among our people.” they said.

Moreover, the finance and central bank chiefs also discussed promoting the use of local currency to facilitate intra-ASEAN trade and investments and the ASEAN payment and settlement systems.

The ASEAN ministers also cited the progress made in enhancing cooperation on customs matters, taxation, insurance and disaster risk financing.

They reiterated their support for the ASEAN Finance Ministers’ Investors Seminar as an important platform to communicate developments and future prospects of doing business in ASEAN.

Ministers also thanked the Philippines for hosting the ASEAN meetings this year as it celebrates its 50th anniversary.

Singapore is chair and host of ASEAN Summit in 2018. – (FREEMAN)