Kuala Lumpur, May 18, 2025 — The Europe Today: The Association of Southeast Asian Nations (ASEAN) is taking concrete steps to revive the idea of establishing a regional monetary fund and bolstering financial security across its member states, ASEAN Chair and Malaysian Prime Minister Anwar Ibrahim said in an interview on Friday.
Speaking to TV BRICS, as reported by The Star Daily, Anwar emphasized the need for ASEAN to transform itself, particularly in the monetary domain, in response to evolving economic and geopolitical challenges.
“One example is the Chiang Mai Initiative, where central banks in the region collaborate and promote the use of local currencies,” Anwar noted. He highlighted current efforts between Thailand, Indonesia, and China aiming to conduct 20 percent of trade transactions in local currencies, representing billions of dollars in economic activity.
“This demonstrates that the next step, where possible, should be the formation of a regional monetary mechanism,” he added.
While acknowledging the global dominance of the US dollar, Anwar stressed the importance of creating safeguards: “Although the dollar remains the dominant currency globally, we can at least establish some form of reprieve to help mitigate risks and protect our national interests.”
The Prime Minister also previewed the upcoming ASEAN Summit, which will be hosted in Malaysia at the end of the month, noting that economic cooperation and financial strategy will be central to the summit’s agenda.
ASEAN comprises ten member states: Indonesia, Vietnam, Laos, Brunei, Thailand, Myanmar, the Philippines, Cambodia, Singapore, and Malaysia. Founded to promote regional peace and prosperity, the bloc is now increasingly focused on monetary integration and economic resilience in the face of global uncertainties.
