ASEAN looks for US$ 60 billion

Infrastructure requirements of the 10-member Association of Southeast Asian Nations (ASEAN) are expected to reach US$ 60 billion by 2010, according to Heng Swee Keat, managing director of the Monetary Authority of Singapore (MAS).

Speaking at the 16th ASEAN Banking Conference last month (November) in Singapore, Mr Heng said, “Overall, ASEAN’s infrastructure needs in the next five years, from 2006 to 2010, are estimated at around US$ 50 to 60 billion. As governments cannot finance these alone, private sector participation will be crucial.

“The demand for infrastructure investment in electricity, water and waste management, roads, ports and telecommunications is particularly large for the economies of Indonesia, Vietnam, and the Philippines,” he added.

ASEAN - Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, Vietnam - has grown into a manufacturing and commodity hub and will continue to play an important role, said Mr Heng. He added that currently the group has a combined GDP of US$ 883 billion that could grow to US$ 1 trillion by 2010.

In order to make further progress, Mr Heng called for continuous structural reforms of ASEAN’s economies and financial systems.