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Tuesday, November 11, 2008

Asean has no issue financing infrastructure: Malaysia

There is no issue with regard to financing infrastructure in Asean as it is flush with liquidity due to gross national savings in excess of US$300 billion.

Second Finance Minister Tan Sri Nor Mohamed Yakcop said that beyond Asean, there 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 yesterday.

He said an estimated 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.

By Bernama

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