AIF Looking to Fund Infra Projects in New Year

The Asean Infrastructure Fund (AIF) is set to roll out plans to fund further infrastructure projects in the new year, according to Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah.

"We hope to set up the special purpose vehicle and determine what the projects are by year-end. By the first quarter of next year, the fund will be launched," he said at the 7th Asean Finance Ministers Investor Seminar in late November.

Malaysia had pledged US$150 million to the fund, which would have a (fund) target size of US$800 million, Prime Minister Datuk Seri Najib Tun Razak said in his keynote address. He also highlighted how infrastructure financing support is important to Asean's growth. A one percent increase in infrastructure spending in Asia can increase private consumption by one percent to two percent of GDP (gross domestic product), and will benefit the wider investment community as well as Asean nations.

Currently, total Asean trade is valued at US$1.7 trillion per year.

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