ADB president Nakao sees realisation of AEC by year-end

KUALA LUMPUR: The Asian Development Bank ( ADB) is optimistic that the Asean Economic Community ( AEC) will meet its year-end integration deadline, despite the skepticism amongst certain quarters.

The multilateral development finance institution’s president Takehiko Nakao said a lot of progress had been made in areas as tariff reductions as well as trade facilitation.

“What is important is to continue to make progress. The AEC is moving in the right direction for a more integrated economy,” he told Bernama on the sidelines of the inaugural ASEAN Finance Ministers’ and Central Bank Governors’ Meeting (AFMGM) here.

The two-day AFMGM ended on Saturday.

Nakao, however, noted that there are outstanding issues as harmonisation of labour market standards and international relations, that needed to be dealt with.

The ADB, through the Asean Infrastructure Fund ( AIF), is ready to finance projects that promote infrastructure development in the 10-member Asean.

At the AFMGM, a total of US$165 million from the AIF fund was approved, to fund a power transmission and sanitation project, both in Indonesia, as well as a power grid development venture in Vietnam.

Nakao said Asean is an economy of US$ 2.5 trillion, one- third the size of China’s, while the population of over 620 million people is half that of the country.

“ASEAN is still an important grouping in the global economy. It is growing steadily about 5.0 per cent annually.

“What is important is to make progress towards a more dynamic, integrated and stable economic zone. I think this is happening,” he added.

What is important is to continue to make progress. The AEC is moving in the right direction for a more integrated economy. Takehiko Nakao, multilateral development finance institution’s president

He said one of the very important elements in the success of the AEC’s integration is that the leaders of the countries and their public, as well as the private sector, can come together.

“They can sit down to discuss and advise each other. They are then taking steps in the right direction.

“The market is reforming with prudent macro economic policies, plus some political stability. I hope AEC continues to make progress,” Nakao added.

ADB, based in Manila, is dedicated to reducing poverty in Asia and the

Pacific through inclusive economic and environmentally sustainable growth, and regional integration.

Established in 1966, it is owned by 67 members, including 48 from the region. — Bernama

Malaysia’s International Centre for Education in Islamic Finance, better known as INCEIF, saw total enrollment rise 67 per cent in two years to 507 in 2014, of whom 185 were women. — Reuters photo

Nakao noted that there are outstanding issues as harmonisation of labour market standards and international relations, that needed to be dealt with.