Finance ministers from the 10 Asean member countries will meet in Chiang Mai next week, and Finance Ministry permanent secretary Suparut Kawatkul said they would consider ways of using surplus savings by reinvesting them in the region. One possible approach is to consider how these funds could be channelled into regional infrastructure development.

The savings are a consequence of investors selling US dollars and buying financial assets in Asia, resulting in a capital inflow into the region. Central banks have come under pressure to intervene in the finance markets to stabilise currencies and have accumulated large amounts of dollars and bonds.

Finance Ministry officials are optimistic Asean can create a mechanism to channel these excessive savings into investment. The mass-transit and other mega-projects in Thailand could be financed.

Suparut said the main objective of the Chiang Mai meeting was to enhance economic and financial cooperation, with a view to achieving macroeconomic sustainability by strengthening financial and fiscal development, as well as promoting the integration of financial and capital markets.

The regional grouping plans to achieve an Asean Economic Community by 2015. Ministers will discuss a road map for financial and monetary integration, comprising capital-market development, financial services and capital-account liberalisation, and Asean currency cooperation, Suparut said. The road map will lead to the introduction of a common currency.

Meanwhile, senior officials from Asean+3 - China, Japan and South Korea - will discuss the Chiang Mai Initiative, which allows members who sign bilateral agreements with other parties to draw emergency funds if they are faced with attacks on their currency.

Wichit Chaitrong

The Nation