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SINGAPORE: The Asian Development Bank (ADB) has given a moral boost to ASEAN's efforts to integrate its economies, saying it will support ASEAN's Economic Blueprint.
ADB said due to the paradigm shifts in global trade, it is even more vital now for ASEAN to integrate its economies.
Speaking at the ASEAN Business and Investment Summit, ADB President Haruhiko Kuroda said ASEAN is in a unique position where the new Charter can help "sell" the grouping to the rest of the world.
He added that the ADB's confidence in ASEAN stems from the determination of its political and business leaders.
"(The) developmental gap must be reduced. Here, ADB will continue to support those less developed members of ASEAN in many ways, providing financial assistance, technical assistance and so on," he said.
A unified ASEAN market can potentially help build bridges for enhanced trade in East Asia.
The bank added that a better integrated ASEAN will better handle possible financial turmoil such as the financial crisis in 1997.
"If one country is affected by financial turmoil, (it) could spread easily among surrounding countries. So here, there's a need to further strengthen financial cooperation and economic cooperation within ASEAN in order to reduce this negative possibility," said Mr Kuroda.
But when it comes to adopting an ASEAN single currency, some business leaders said it is unlikely to be on the cards within the 2015 timeframe.
"For any country, in the ASEAN context, to give up national sovereignty over monetary policy or fiscal policy is frankly not reasonable and highly impractical over the next seven, eight, or perhaps 15 years," said Citigroup’s head of ASEAN markets and banking Piyush Gupta.
The three-day ASEAN Business and Investment Summit will draw to a close on Sunday. - CNA/ac
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