JAKARTA (TheInsiderStories) - Association of Southeast Asian Nations (ASEAN) ministers sees the strengthening of domestic economy is the primary action to take to anticipate the new economic policy of United State’s (US) elect-president Donald Trump. The conclusion comes out on The 11th ASEAN Finance Ministers Investors Seminar in Jakarta with theme ASEAN: Dynamic, Resilient And Inclusive Region.
Indonesia’s Deputy Minister of Finance, Mardiasmo revealed that the most important thing now is to strengthen and provide good business climate and make ASEAN as a destination rather than investing global.Dirinya himself believes that Indonesia is able to face the current global economic pressures are regarded as still temporary.
While senior Minister of State for Finance and Law Singapore, Indranee Rajah considers that the current situation is still too early to be considering the American presidential election just a few days have passed. He said there are many things of his campaign expressed as concentrations in infrastructure and creating growth for America.
If the policy could eventually encourage the growth of the American economy and will ultimately increase product demand then would it be a good thing. Currently it will only monitor the situation beforehand how the new American government made policies. She added, all countries right now in the wait and see position and in the meantime is expecting Trump could generate infrastructure and growth in US.
“We expect when Trump said he would push infrastructure, with growth then it will definitely be able withstand the impact of the crisis. On the other side, each country should make efforts to strengthen their economies and make sure that there the population of the country’s competitivenes and have skills that baikm so it can be productive, “said Indranee.
In line with Indranee, Malaysian ambassador Dato’Seri Zahrain revealed the most important thing is to build the trust of investors. State plays an important role in shaping the trust of investors by providing various facilities to investors and ensure stability in the process. According to him, the perception that countries have to portrait is the government needs to play important role in providing the confidence.
“You must be easy to do bussiness, you must have stability in the country. Malaysia has manage to portrait that image,” He stated.
Vice Minister of Thailand Kiatchai Sophastieanphong sees, the new economic policy of US could push the Federal Reserves to raise the rate and the reversal of capital outflows from Asian countries to the Trump’s country. Thailand itself, He said, aim to maintain the interest rate in the low level to attract the capital inflow especially in the form of portfolio investment.
“We do not want to lose the capital inflow especially in the form of portfolio investment, which may have short-term impact on the policy and on the stock market. Because of that, we are working closely to come up the strategy to address this dilemma. In the mean time, we need to be alert about potential short-term impact,” He said.
To anticipate the possibility of global turmoil, Kiatchai said, Thailand are thinking of setting up infrastructure fund 100 billion Baht which an able international investors to participate in the huge infrastructure planning in the next five years need investment worth 1.79 trillion Baht.
“For that we are now very concerned about the market to create a strategy to overcome this dilemma. In the meantime we have to be aware of the potential short-term impact. Talking about policy tightening, I am sure my colleague in another country will strive to maintain yields and eyes money, “said Kiatchai.
He also does not believe will be able to continuously reduces monetary policy, so it needs to be equipped to support sized to accommodate monetary policy and push for the capital remain in the country.
On the latest meeting of 11th East Asia Summit in September, all leaders of ASEAN reaffirmed the efforts to enhance regional economic integration in East Asia and the Asia Pacific region and note the regional integration initiatives such as ASEAN Economic Community and Regional Comprehensive Economic Partnership (RCEP) Agreement.
The leaders also welcomed the outcomes of the 10th WTO Ministerial Conference in Nairobi, Kenya, in December 2015 and noted that the “Nairobi Package”, in particular decisions on agriculture, cotton, and issues related to least-developed countries (LDCs) will bring great benefits to all WTO Members.
“We also committed to advancing negotiations on remaining Doha Development Agenda (DDA) issues. We also noted that a range of issues of common interest and importance to today’s global economy may be legitimate issues for discussions in the WTO,” the leaders said.