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ASEAN+3 Finance leaders unite to bolster regional resilience and financial integration

Reforms to regional safety nets, disaster risk financing, and sustainable bond markets headline progress at high-level meeting

Updated 1 year ago · Published on 06 May 2025 2:54PM

ASEAN+3 Finance leaders unite to bolster regional resilience and financial integration
Delegates also underscored the need to protect regional supply chains and promote macroeconomic dialogue and financial integration - May 6, 2025

THE 28th ASEAN+3 Finance Ministers and Central Bank Governors’ Meeting (AFMGM+3) wrapped up on 4 May 2025 with renewed commitment to regional solidarity and financial cooperation amid global uncertainties and structural shifts.

The session opened with economic briefings from Asian Development Bank President Masato Kanda, IMF Deputy Managing Director Kenji Okamura, and ASEAN+3 Macroeconomic Research Office (AMRO) Director Li Kouqing, who presented the ASEAN+3 Regional Economic Outlook 2025 under the theme “Strengthening Resilience in Uncertain Times”.

Acknowledging the volatility of the global economic landscape, ASEAN+3 finance leaders stressed the importance of restoring fiscal buffers, pursuing structural reforms, maintaining exchange rate flexibility, and applying targeted policy responses to support inclusive growth.

"There was clear consensus on the need for closer regional cooperation and policy agility,” the co-chairs noted in a joint statement, adding that domestic demand and deeper intra-regional trade remain critical drivers of growth.

A  statement relased by the Ministry of Finane (MOF)  today said, a total of 226 delegates from ASEAN Member States, China, Japan, South Korea, and international financial institutions took part in the meeting held in Milan, Italy.

It was co-chaired by Malaysia’s Finance Minister II Senator Datuk Seri Amir Hamzah Azizan, Bank Negara Malaysia Governor Dato’ Seri Abdul Rasheed Ghaffour, China’s Finance Minister Lan Fo’an, and People’s Bank of China Governor Pan Gongsheng.

The meeting reaffirmed the group’s commitment to multilateralism and a transparent, rules-based global trading system anchored by the World Trade Organization (WTO). Delegates also underscored the need to protect regional supply chains and promote macroeconomic dialogue and financial integration.

MOF highlighted that there were several major outcomes that were agreed to during the meeting. One was progress on the Chiang Mai Initiative Multilateralisation (CMIM), including the approval of a Rapid Financing Facility and advancement towards a capital-based structure—seen as a step towards enhancing its effectiveness as a regional financial safety net.

On disaster preparedness, leaders supported the expansion of the Disaster Risk Financing Initiative, backed by the Southeast Asia Disaster Risk Insurance Facility (SEADRIF), to improve regional resilience against natural disasters.

The Asian Bond Markets Initiative marked its 15th anniversary with the Credit Guarantee and Investment Facility reaching a milestone of 100 bond and sukuk issuances across 12 economies, with emphasis on green and digital finance.

Participants also endorsed the launch of a new Structural Policy Improvement and Review Instrument with Technical Assistance (SPIRIT), which aims to support countries implementing key economic reforms.

An update to the 2019 Strategic Directions introduced an Experts Panel—including a Malaysian representative—to steer regional reform priorities through to 2026.

The meeting concluded with the adoption of a Joint Statement, and Malaysia and China proposed that the deliverables be brought forward for recognition at the ASEAN+3 Leaders’ Summit in October 2025.

Expanding Fiscal Dialogue

On the sidelines of the main event, Amir Hamzah and Minister Lan Fo’an co-chaired the ASEAN+3 Finance Ministers’ Fiscal Exchange.

The dialogue focused on fiscal policy issues relevant to the region, including strategies for promoting growth while maintaining fiscal sustainability, and addressing the long-term implications of an ageing population. - May 6, 2025

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