Minister at the Prime Minister’s Office and Minister of Finance and Economy II Dato Seri Setia Dr Awang Haji Mohd Amin Liew bin Abdullah, in his keynote address at The 2nd ASEAN Forum: The Future of Finance, stressed on adaptability as crucial for businesses, investors and policymakers as well as collaboration on global issues like climate change and technology is essential.
The minister said, “Despite a strong post-pandemic recovery, we are now facing slowdowns in major economies, high inflation and challenges like supply chain issues and geopolitical tensions. Advanced economies struggle with low growth, while emerging markets are faced with inflation and reduced demand.”
He added, “Central banks, particularly the Fed, have raised interest rates in the past to combat inflation, affecting global capital flows and emerging markets. The Fed recently signalled that inflation is moving back to target and the labour market is slowing. China’s shift to manufacturing in high-tech sectors has increased competition, prompting responses like higher tariffs from Europe. Geopolitical risks also disrupt global trade and energy markets.”
The minister said, “With interest rates declining and Basel III tightening lending practices, banks are becoming more restrictive. The high demand for financing is pushing private lenders, backed by long-term capital from institutional investors, to fill the gap.
“While these challenges highlight the need for adaptation, they also present opportunities for innovation and growth. Staying informed and proactive will be the key to navigating this evolving financial environment.”
He also said, “Adaptability is also evident in the world of pension funds. Pension funds have increasingly diversified their assets to achieve solid returns amid economic uncertainty and an ageing population. Many mature and sophisticated funds are now investing more in alternatives, which offer higher returns, greater diversification, and unique opportunities.”
Highlighting Brunei’s adaptability, he said, “It is advancing its sustainability goals by taking several initiatives which includes updating its Debenture Issuance Guidelines to align with ASEAN Sustainability-Linked Bonds Standards as well as promoting green and sustainable bonds in line with the ASEAN Capital Market Forum’s Roadmap.
“With over USD48 billion in ASEAN-labelled bonds issued since 2016, the move enhances funding for sustainable projects. Additionally, the ASEAN Annual Report 2022-2023 underscores the Sultanate’s commitment to regional cooperation through cross-border trade facilitation, service improvement, investment enhancement and financial integration, turning challenges into opportunities for mutual prosperity and strong partnerships.” – James Kon
