Finance ministers and central bank governors from the ASEAN+3 countries convened in Milan on May 4, 2025, for the 28th ASEAN+3 Finance Ministers' and Central Bank Governors' Meeting (AFMGM+3), co-chaired by Malaysia and China. The high-level dialogue underscored regional economic resilience, despite mounting global challenges, and produced a strong joint statement committing to bolstered financial cooperation, macroeconomic stability, and sustainable growth.
Economic outlook: Resilience despite headwinds
The ministers acknowledged that the ASEAN+3 region maintained robust growth in 2024, with GDP expanding by 4.3%, driven by resilient domestic demand, an upturn in the electronics sector, and a recovery in tourism. Inflation across the region has largely returned to pre-pandemic levels, aided by prudent monetary policies and well-anchored expectations.
Looking ahead, the region is projected to sustain approximately 4% growth in 2025. However, leaders recognized growing risks, including rising protectionism, trade fragmentation, tighter global financial conditions, and geopolitical tensions. The joint statement called for enhanced intra-regional cooperation and reaffirmed support for multilateralism, open trade, and the Regional Comprehensive Economic Partnership (RCEP).
Strengthening financial safety nets
Key among the meeting's outcomes was the agreement to reinforce regional financial safety nets. Ministers endorsed updates to the Chiang Mai Initiative Multilateralisation (CMIM), including the introduction of a Rapid Financing Facility (RFF) and steps toward a paid-in capital (PIC) structure to enhance emergency liquidity support. The Structural Policy Improvement and Review Instrument with Technical Assistance (SPIRIT) was also launched to support structural reforms in member countries.
Regional policy platforms and innovation
The meeting welcomed the launch of the ASEAN+3 Fiscal Policy Exchange Initiative, aimed at promoting peer learning on fiscal sustainability and demographic challenges. Strategic Directions for the ASEAN+3 Finance Process, last updated in 2019, are now undergoing a comprehensive review, supported by an expert panel.
The ASEAN+3 Macroeconomic Research Office (AMRO) was praised for its contributions, including enhanced surveillance, technical assistance, and policy guidance. AMRO will implement several strategic plans through 2027 and receive renewed financial support from China, Japan, and South Korea.
Sustainable finance and digital transformation
Progress under the Asian Bond Markets Initiative (ABMI) was highlighted, particularly in boosting local currency bond issuance and promoting sustainable finance. The Digital Bond Market Forum was officially launched as a collaborative platform for financial innovation.
In disaster preparedness, notable achievements were shared under the Disaster Risk Financing Initiative (DRFI), such as insurance payouts to Lao PDR and parametric insurance planning in the Philippines. A roadmap for 2026–2028 will soon be finalized to guide further regional resilience efforts.
Future cooperation and conclusion
Participants acknowledged the growing importance of sustainable infrastructure financing and digital financial stability, especially amid rapid technological change. Working Groups (WGs) were tasked with furthering these goals.
The meeting closed with a commitment to continue deepening cooperation and to meet again in 2026 in Samarkand, Uzbekistan, under the co-chairmanship of the Philippines and Japan.
Article edited by Jack Wu
