ID :
29589
Tue, 11/11/2008 - 16:01
Auther :
Shortlink :
https://oananews.org//node/29589
The shortlink copeid
ASEAN FLUSH WITH LIQUIDITY, NO ISSUE FINANCING INFRASTRUCTURE
KUALA LUMPUR, Nov 11 (Bernama) -- There is no issue with regards to financing infrastructure in the Asean region as it is flush with liquidity due to gross national savings in excess of US$300 billion.
Second Finance Minister, Nor Mohamed Yakcop said that beyond Asean, here
remained large pockets of liquidity in countries such as China, India and
the Middle East.
"With a large and rapidly growing young population, there remains
significant demand for greater infrastructure and a basis for strong project
cash flows," he said at the Asean Infrastructure Financing Mechanism Conference
here Monday.
He said it had been estimated that investments of US$30 billion are
required annually for infrastructure development in the region.
"To drive the Asean infrastructure financing, we need to ensure good
project cash flows and effective management of risks. Project risks should be
shared on an equitable basis and intermediated through the capital markets to
reduce the concentration of risk," he added.
Nor Mohamed said that increasing private sector involvement in
infrastructure projects can assist in building the country's domestic private
sector while developing the capital market.
According to him, Asean countries could also collaborate to fast-track the
creation and growth of listed companies through cross-listings on other Asean
exchanges.
The scale of infrastructure projects would also promote corporate
development through building management capacity and ensuring new start-ups
quickly adapt to internationally-benchmarked standards for corporate governance
and accounting.
"This in turn, could facilitate an increased level of cross-border
intermediation activities of advisors, listed companies and financial
intermediaries, thereby accelerating the process of intergrating Asean's capital
markets," he said.
He added that regional cooperation on infrastructure represents a "win-win"
strategy for all in Asean, particularly during these challenging times by
pooling together the diverse strengths of Asean member countries to further
enhance economic resilience.
"Malaysia feels strongly that the economic growth of any country would
gain substantially from infrastructure development. We believe that the
Malaysian experience can be successfully replicated throughout the rest of the
region," he added.
Second Finance Minister, Nor Mohamed Yakcop said that beyond Asean, here
remained large pockets of liquidity in countries such as China, India and
the Middle East.
"With a large and rapidly growing young population, there remains
significant demand for greater infrastructure and a basis for strong project
cash flows," he said at the Asean Infrastructure Financing Mechanism Conference
here Monday.
He said it had been estimated that investments of US$30 billion are
required annually for infrastructure development in the region.
"To drive the Asean infrastructure financing, we need to ensure good
project cash flows and effective management of risks. Project risks should be
shared on an equitable basis and intermediated through the capital markets to
reduce the concentration of risk," he added.
Nor Mohamed said that increasing private sector involvement in
infrastructure projects can assist in building the country's domestic private
sector while developing the capital market.
According to him, Asean countries could also collaborate to fast-track the
creation and growth of listed companies through cross-listings on other Asean
exchanges.
The scale of infrastructure projects would also promote corporate
development through building management capacity and ensuring new start-ups
quickly adapt to internationally-benchmarked standards for corporate governance
and accounting.
"This in turn, could facilitate an increased level of cross-border
intermediation activities of advisors, listed companies and financial
intermediaries, thereby accelerating the process of intergrating Asean's capital
markets," he said.
He added that regional cooperation on infrastructure represents a "win-win"
strategy for all in Asean, particularly during these challenging times by
pooling together the diverse strengths of Asean member countries to further
enhance economic resilience.
"Malaysia feels strongly that the economic growth of any country would
gain substantially from infrastructure development. We believe that the
Malaysian experience can be successfully replicated throughout the rest of the
region," he added.
