Continuous efforts needed for recognition of Asean as single asset class

KUALA LUMPUR: Regional efforts from across all capital market value chains must continue in order to ensure a seamless connectivity and recognition of Asean as a single asset class, said Securities Commission (SC) Malaysia Deputy Chief Executive Datuk Dr Nik Ramlah Mahmood.She said Asean could be served better through greater collaboration and coordination among the various agencies.

"The ability to achieve the Asean Economic Community (AEC) goals set for 2015 and beyond, lies in our collective efforts which will be vital over the coming months as we approach the deadline to deliver on the Asean promise," she said.

Ramlah said this in her keynote speech at the Asean Fixed Income Summit (AFIS), organised by Cagamas Bhd and Bank Negara Malaysia, here Monday.

The AEC is set to be launched in December 2015 and chaired by Malaysia.

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Under the AEC framework, the 10 Asean economies will integrate into a coherent whole as a single market with a common trade, investment and production base.

Meanwhile, Ramlah said the potential for the Malaysian bond and sukuk markets to continuously play an important role in contributing towards funding infrastructure development locally and regionally was substantial.

This prominent potential was seen given the massive projected infrastructure needs within Asean, she said.

Based on the Asian Development Bank's estimates, Asia would need to investment some US$8 trillion in overall national infrastructure between 2010 and 2020.

She said out of the amount, the Asean region alone needed more than US$60 billion per year for infrastructure financing.

"With these staggering amounts of funding required to build high-quality physical infrastructure, the Asean governments might face challenges in fully fulfilling construction costs given fiscal and budgetary constraints.

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"As such, private sector participation becomes imperative to supplement government financing," she said.

Ramlah noted that the SC would continue to pursue greater development of the bond and sukuk markets to ensure relevance and attractiveness to both issuers and investors. – Bernama

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