KUALA LUMPUR: ASEAN ministers will endorse the operationalisation of the Rapid Financing Facility (RFF), aimed at helping financially distressed member countries to cushion against exogenous shocks or financial problems caused by external factors.
Besides this safety net tool, Bank Negara Malaysia deputy governor Datuk Marzunisham Omar announced the grouping would also endorse the Paid-In-Capital, which is part of the Chiang Mai Initiative Multilateralisation (CMIM), a self-help regional mechanism to help countries facing liquidity problems.
“These two programmes would help ASEAN members to help each other in the event of a crisis,” he told Bernama after co-chaired the ASEAN+3 finance and central bank deputies meeting today.
Marzunisham, however, clarified that ASEAN countries are not foreseeing a financial crisis.
“No, we are not, and no country in the region is facing any liquidity crisis. But it’s always good to be prepared,” he said.
Marzunisham emphasised that the availability of the facilities is seen as a demonstration of the region coming together to assist any member country in the event that liquidity needs arise.
On the sweeping US tariffs imposed on major trade partners, Marzunisham said the representatives attending the meetings reached a consensus that the impact on exports and ASEAN’s economic growth would be substantial.
“Then there is a consensus that we will look into how we can further strengthen regional trade. There is a consensus for us to look at where, individually or collectively, we can come together to boost investment in the digitalisation area and climate-related investment. And third is the need to strengthen our financial sector, financial resilience,” he said.
In response to a question on ASEAN’s strategy to address the impact of expansive tariffs, Marzunisham said that while negotiations are ongoing, the government has outlined comprehensive plans and key points to support its position.
“We will not retaliate (against the US), and we will engage and talk to the United States. There will be a meeting by the ASEAN ministers tomorrow, and let’s look forward to and wait for that and see whether they will come up with any concrete actions collectively at the ASEAN level,” he said.
