ASEAN INFRASTRUCTURE FUND TARGETS MAY LAUNCH

KUALA LUMPUR, Dec 8 (Bernama) -- The Asean Infrastructure Fund (AIF), which
will assist infrastructure development in Asean countries, is schedule to be
launched May next year, says Second Finance Minister, Ahmad
Husni Hanadzlah.

He said the AIF would be operated by a special purpose vehicle (SPV) and
managed by the Asian Development Bank.

The SPV will issue bonds and countries, with surplus funds, can invest in
infrastructure development and earn dividends.

Husni said China, Japan and Korea would also participate in the AIF.

" Discussions to fine-tune the fund's structure is ongoing between all
Asean officials," the minister told reporters after opening a Malaysia-Indonesia
Economic Seminar here Tuesday.

Meanwhile, the seminar deliberated on economic co-operation between
Malaysia and Indonesia in overcoming the global economic crisis.

Husni said among Asean countries, Indonesia was one of Malaysia's major
trading partner in the region, with trade in favour of the former.

Between January and September 2009, bilateral trade between Malaysia and
Indonesia declined 20 per cent to RM28.7 billion (US$1=RM3.38) compared with
RM35 billion registered in the same period last year.

--BERNAMA