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May 15, 2025

ASEAN Finance Ministers and Central Bank Governors Progresses Disaster Relief Financing

dr-yoshihiro-kawai-highlights-progress-on-asean3-drf-and-seadrif-initiatives-at-afcdm3-meeting
— https://seadrif.org/news/dr-yoshihiro-kawai-highlights-progress-on-asean3-drf-and-seadrif-initiatives-at-afcdm3-meeting/
May 15, 2025

In April and May, ASEAN finance ministers and central bank governors met at Kuala Lumpur, Malaysia and Milan, Italy. Among other deliverables, ASEAN’s financial government officials committed to enhance disaster relief funding mechanisms, doubling the Chiang Mai Initiative Multilateralization (CMIM) agreement into US$240 billion pool, and established a new Rapid Financing Facility. This facility will enable swift access to emergency funding in response to financial shocks and crises.

Additionally, ASEAN financial ministers highlighted progress made under the Disaster Risk Financing Initiative (DRFI) and the Southeast Asia Disaster Risk Insurance Facility (SEADRIF), including an immediate payout for flooding in Laos PDR and the Philippines, as well as technical assistance for the recent Thailand earthquake. These initiatives are critical, especially as disaster insurance coverage remains divergent across ASEAN as of 2025, from as low as 6% in Cambodia and Myanmar, to close to 70% in Malaysia.

Moving forward, ASEAN+3 officials will implement the endorsed 2026-2028 DRFI Roadmap by end of 2025, centered on bolstering disaster risk finance foundations, insurance coverage, and exploring alternative financial instruments. Overall, these initiatives highlight AMS commitment to regional macroeconomic stability and financial resilience, while paving the way for regulatory harmonization as countries align with regional disaster risk financing initiatives and best practices.

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