US$485 MLN ASEAN INFRASTRUCTURE FUND IN MALAYSIA

By Samantha Tan

KUCHING, April 9 (Bernama) -- The Asean Infrastructure Fund (AIF) worth
US$485 million will be located in Malaysia after obtaining unanimous approval
from the Asean finance ministers.

"This recognition shows the trust of the Asean nations on Malaysia's
stability," Second Finance Minister Ahmad Husni Hanadzlah told reporters after
meeting representatives of the Sarawak business guilds and associations, here
today.

He said the Asean finance ministers also fully supported Malaysia's proposal
that a work group at the highest level held a meeting to coordinate agreements
of the AIF shareholders and AIF structure.

"We will finalise the organisation structure in terms of its governance and
board of directors in May and we hope that in October during the meetings of
International Monetary Fund and the World Bank, we can sign the agreement
involving all Asean countries," he said.

Ahmad Husni said that as a key leader of the AIF, Malaysia had succeeded in
getting the support and cooperation of the member countries, with a contribution
of US$485 million, where the Asian Development Bank (ADB) will contribute US$150
million.

For the second phase, he said the AIF would issue bonds for the private
sectors as well as the government especially the central banks that wanted to
invest their reserves in the fund.

The fund would complement infrastructure development among member countries
to ensure a balance in the Asean economy, besides expanding the grouping's
market size.

"The fund actually involves the government. This means that the government
has plans to provide roads, ports, electricity and water supplies," Ahmad Husni
said.