12th AFMGM Successfully Concludes, Signalling Continued Unity Among Member Countries

By Zarul Effendi Razali

KUALA LUMPUR, April 10 (Bernama) -- The 12th ASEAN Finance Ministers and Central Bank Governors’ Meeting (AFMGM) concluded today, with the grouping endorsing Malaysia’s Priority Economic Deliverables (PED) against a backdrop of debilitating tariffs imposed on member states, but it prodded members to further reaffirm their commitment to deepening financial integration and reinforcing regional economic resilience.

It was a successful outing for Malaysia as it hosted more than 10 key meetings. The AFMGM was co-chaired by Finance Minister II Datuk Seri Amir Hamzah Azizan and Bank Negara Malaysia Governor Datuk Seri Abdul Rasheed Ghaffour, both of whom did a commendable job as member states grappled with the US tariffs.

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A pertinent outcome from the meeting was ASEAN’s anticipation to re-establishing the ASEAN Swap Arrangement (ASA) to strengthen the region’s financial safety net and resilience.

Additionally, ASEAN+3 ministers will move forward with operationalising the Rapid Financing Facility (RFF), aimed at helping financially distressed member countries to cushion against exogenous shocks or financial problems caused by external factors.

The grouping also agreed to enhance the Chiang Mai Initiative Multilateralisation (CMIM) -- a self-help regional mechanism safety tool to help countries facing liquidity problems -- with paid-in capital.

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The CMIM involves the 10 ASEAN member countries, as well as China, Japan, and South Korea, forming the ASEAN+3 regional financial safety net. 

It was established in May 2000 as the Chiang Mai Initiative in response to the 1997/98 Asian Financial Crisis. It was later multilateralised and became the CMIM in 2010, with the total funding size increased to US$240 billion (US$1=RM4.46) from US$120 billion previously.

The meeting holds particular significance as Malaysia had the privilege of hosting the inaugural AFMGM 10 years ago on March 21, 2015, marking a pivotal step in strengthening ASEAN’s financial integration and cooperation -- vital ingredients to make the region more cohesive.

The gathering, held at the sprawling Kuala Lumpur Convention Centre, brought together ASEAN Finance Ministers and Central Bank Governors to brainstorm on key economic issues, review the progress of financial and central bank cooperation, and reaffirm their shared commitment to fostering a resilient, inclusive, and sustainable economic future for Southeast Asia.

It was difficult for officials to deny that the US tariffs hogged the limelight at the four-day AFMGM. The tariffs, which affected markets globally, culminated in ASEAN coming out with a joint statement calling for a frank and constructive dialogue with Washington.

They also stressed that ASEAN would not retaliate against the retaliatory tariffs by the US although the Indo-Chinese members in ASEAN were among the hardest hit by the tariffs.

The latest is that US President Donald Trump announced a three-month pause for reciprocal tariffs for over 75 countries.

Indonesian Finance Minister Sri Mulyani Indrawati expressed hope that the pause would provide time for the affected nations to discuss the import levies with the US.

Laos Deputy Finance Minister Soulivath Souvannachoumkham did not deny the possibility that despite the pause, the baseline tariffs would still be difficult and challenging for many countries.

Prime Minister Datuk Seri Anwar Ibrahim said Malaysia, as the ASEAN chair this year, is working to set a date for the Special Leaders’ Meeting to discuss the bloc’s way forward in addressing and mitigating potential disruptions to regional trade caused by the tariffs imposed by the US.

Starting from April 7, more than 10 meetings were held, including high-level discussions with the ASEAN-US Business Council, ASEAN-European Union, and the ASEAN Business Advisory Council (ABAC).

These meetings with private sector organisations, which focused on financial matters, are crucial for enhancing Southeast Asia's regional appeal as a trade and investment destination.

The AFMGM and related meetings also witnessed the endorsement of the ASEAN Infrastructure Fund (AIF) Action Plan (2025-2028) during the ASEAN Finance Ministers’ Meeting -- one of Malaysia’s PED and the Asian Development Bank (ADB) as the AIF administrator.

-- BERNAMA