ASEAN financial leaders endorsed various programs and guidelines to enhance financial literacy, liberalization, and stability during the 11th ASEAN Finance Ministers and Central Bank Governors’ Meeting (AFMGM) on April 5, 2024, in Laos. Among the key items announced was the proposal to establish a new cross-sectoral working committee to address cross-cutting issues on finance, insurance, health, and food security.
To navigate geopolitical tensions affecting trade and commodity prices, ASEAN countries agreed to prioritize regional financial digitalization and payment settlements. Notably, AFMGM leaders announced the ASEAN Taxonomy Version 3 to support just transition for sustainable finance, the establishment of the ASEAN Local Currency Transaction (LCT) Framework and the “Guidelines in Engaging and Collaborating with External Partners for the ASEAN Finance Cooperation”. In addition, AFMGM also discussed measurement of G20 Cross-Border Payment Targets for both cross-border retail payments and remittances.
The Council led a delegation of 10 member companies to this meeting and presented a whitepaper to the ASEAN governments at the AFMGM plenary. On the sidelines, US-ABC presented the 2024 Financial Services Whitepaper “Strengthening connectivity for Resilient Financial Systems in Southeast Asia”, with six key recommendations on infrastructure finance, digital payment innovations, connectivity and data governance. To accelerate transition finance, the Council proposed to engage with Digital Economy Framework Agreements (DEFA) negotiators and adopt climate disclosure frameworks in line with international standards. The Whitepaper also urges ASEAN to create a collaboration between Health and Finance Ministers and incorporate health aspects into financing alternatives and policies.
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