ASEAN’s top finance ministers and central bank governors have reaffirmed their commitment to building a resilient, inclusive, and sustainable regional economy amid rising global uncertainties.
The 12th ASEAN Finance Ministers’ and Central Bank Governors’ Meeting (AFMGM), co-chaired by Malaysia’s Finance Minister II, Amir Hamzah Azizan, and Bank Negara Malaysia Governor, Abdul Rasheed Ghaffour, also expressed condolences and solidarity with the people of Myanmar and Thailand following the recent earthquake on 28 March.
The meeting acknowledged that ASEAN’s economy remains robust, supported by strong domestic demand, steady investments, and favourable labour conditions.
However, ministers raised concerns over the recently announced U.S. tariffs, warning of their potential impact on trade and investment flows.
ASEAN reiterated its commitment to an open, rules-based multilateral trading system and affirmed it would not take retaliatory action against the U.S.
As 2025 ASEAN Chair, Malaysia introduced three key priorities for the finance track, improving access to finance for a just transition, developing a sustainable and inclusive capital market, and enhancing cross-border instant payment connectivity.
A major focus was placed on mobilising funding for the ASEAN Power Grid (APG) to strengthen energy security and support the region’s low-carbon transition. Malaysia also proposed using Islamic finance tools to broaden funding options and attract private capital.
The meeting welcomed Malaysia’s initiatives to assist SMEs with green transition tools, including the ASEAN Greening Value Chain Playbook and the ASEAN ESG Disclosure Guide (Version 1) aimed at helping supply chain-linked SMEs comply with sustainability standards.
ASEAN also highlighted growing progress in cross-border payment systems, with 21 linkages now operational with countries such as Japan, India, and Hong Kong. A multi-year roadmap has been endorsed to expand payment connectivity and enhance cybersecurity measures to combat scams and fraud.
The ministers endorsed the ASEAN Infrastructure Fund (AIF) Action Plan 2025–2028, which includes the establishment of the ASEAN Power Grid Transition Finance Facility and a pilot Islamic finance facility to support infrastructure financing.
The finalisation of Version 3 of the ASEAN Taxonomy for Sustainable Finance and the ongoing development of Version 4 were also welcomed. These tools are seen as essential for guiding sustainable capital flows across the region and aligning them with international standards.
The AFMGM concluded with a strong show of unity and appreciation for Malaysia’s role as host, marking the 10th anniversary of the ASEAN Economic Community (AEC).
Leaders are now gearing up for the Philippines’ 2026 Chairmanship and the rollout of the AEC Strategic Plan 2026–2030, the first step toward achieving the ASEAN Community Vision 2045.
Shahriena Shukri is a journalist covering business and economic news in Malaysia, providing insights on market trends, corporate developments, and financial policies. More about Shahriena Shukri.
