April 30, 2023 (MLN): Datuk Seri Anwar Ibrahim Prime Minister of Malaysia has underlined the need for the establishment of an Asian Monetary Fund (AMF) as an alternative to the International Monetary Fund (IMF), in view of the current needs of many Asian countries, according to The Economist.
It is the time for policymakers to consider setting up a new multilateral organization that can provide and bolster development, growth, and stability, Juwai IQI global chief economist Shan Saeed said.
He was of the view that the alchemy of global financial markets has changed over the last 16 years.
"It is very important for sophisticated and smart investors to fathom the global macro picture to fully comprehend the dots in order to make economic and financial sense," he said.
The IMF and the World Bank Group are two central institutions that were founded in 1944 at the end of World War II that underpin the United States' (US) dominance in the global financial system.
Shan further said, that as global growth pivots to Asia, the Gulf Cooperation Council, and Africa, Asian economies are increasingly in need of support, particularly in the areas of infrastructure, technology, education, manufacturing, and e-commerce.
He noted that Asia requires an investment of about US$2 trillion in infrastructure, education (US$300bil-US$500bil), technology ($3 trillion), manufacturing ($1 trillion-$2 trillion) and e-commerce ($500billion).
"Only an institution like the AMF can bolster the regions for development and growth for Asian economies," he added.
AMF can become one of the preeminent multilateral financial institutions committed and dedicated to the growth of Asian economies, thus ushering in an era of prosperity and the upliftment of masses at the macro level, he said.
Investing in education is the key to the strategic development of the region, and strongly advocates female education which has a direct correlation with a country’s gross domestic product growth, he stressed.
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Posted on: 2023-04-30T13:59:11+05:00
