APR News

The inaugural meeting of the AIIB’s Board of Governors was held in Beijing, China on January 16-17, 2016. The Governors approved the AIIB’s by-laws, rules and codes of conduct and appointed Mr. Jin Liqun, former Vice Minister of Finance of China as the first President of the Bank. The AIIB operational activities are expected to be arranged in the first quarter of 2016. Then the Bank will launch projects financing.
According to the Articles of Agreement of the AIIB, the purpose of the Bank is to foster sustainable economic development, create wealth and improve infrastructure connectivity in Asia by investing in infrastructure and other productive sectors; and promote regional cooperation and partnership in addressing development challenges by working in close collaboration with other multilateral and bilateral development institutions.
As Russian Minister Alexey Ulyukaev emphasized, the AIIB would become one of the largest financial institutions in terms of the number of participants, countries, projects and size of capital involved in operations. The AIIB will have a three-level management system including the Board of Governors, Board of Directors and relevant executive bodies. “The Board of Governors will make principal decisions regarding the Bank’s development strategy and its charter documents, whereas the Board of Directors will approve projects”, - he said.
AIIB was founded by 57 countries, 37 – of the Asian region and 20 – of other regions of the world. Russia has become the third by size stockholder of the AIIB after China and India with stake in its capital equal to 6.54% .
Press-release at the official web-site of the Ministry of Economic Development of the Russian Federation

The same was made by several other countries.
According to Russian Minister of Economic Development Alexey Ulyukaev, appointed as a Governor from Russia in the Asian Infrastructure Investment Bank (AIIB), some of the states have not completed domestic procedures of joining the AIIB, so the group which includes Russia is in the process of establishment. Kazakhstan, Iran and Tajikistan expressed their intention to join this group. As Alexey Ulyukaev emphasized, “this group will consolidate the second largest package, about 13%, that will allow the group to influence management decisions since the basic decision is made according to the amount of shares controlled.”
It is expected that the AIIB will begin to consider first applications in the second quarter of 2016. According to Alexey Ulyukaev, priority projects for Russia to apply for the AIIB financing will include infrastructure projects, e.g. highway and railway construction, and energy facilities of the Russian Far East and Siberia.
Press-release at the official web-site of the Ministry of Economic Development of the Russian Federation

According to the IMF assessment following up the mission, “Despite challenging external and domestic conditions in 2015, the authorities have been able to maintain macroeconomic and financial stability, while making significant progress in improving the foundations for sustained economic growth over the medium term. Malaysia’s economy has been affected by multiple shocks since late 2014, including a sharp fall in commodity prices, weak external demand, political developments and capital outflows. However, the implementation of the goods and services tax (GST) last April, along with cuts in subsidies and operational expenditures, limited the impact on government finances of the oil price decline. Exchange rate flexibility has helped buffer the real economy and financial system from the sharp fall in commodity prices and volatility in global financial markets, while prudent monetary policy helped contain inflationary pressures arising from exchange rate depreciation and the implementation of the GST. Economic growth should remain solid in 2016, edging down to around 4.4 percent from an estimated 4.8 percent in 2015. Continued uncertainty about external conditions, including the likelihood of persistently low oil prices and more capital outflows, require continued prudent macroeconomic management. Protecting the budget should continue to be a top priority, and in this context the mission applauds the authorities’ determination to adhere to the federal government’s deficit target of 3.1 percent of GDP for 2016 and the medium term aim of balancing the budget by 2020-21. Malaysia’s recent strong growth, high investment and improvements in business environment scorecards are impressive. But the lower potential growth in the advanced economies makes maintaining this growth performance more challenging and provides an additional imperative for structural reforms. Implementation of reforms envisaged in the 11th Malaysia Plan and commitment to freer trade policies, including in the context of the Trans-Pacific Partnership Agreement, ASEAN Economic Community, and the proposed Regional Comprehensive Economic Partnership, should all help anchor structural reforms and raise Malaysia’s potential growth over the medium term. Further raising the skills of Malaysia’s labor force will be critical in the drive to become a high income nation. Steadfast implementation of education policies is needed to raise the quality of the educational system and student attainment standards. The mission also welcomes the authorities’ plans to strengthen anticorruption measures, as this should improve the business environment and public confidence in official institutions.
Press-release at the official IMF web-site

ASEAN Secretariat published the fact sheets presenting the key achievements of ASEAN member countries on implementing ASEAN mission to improve the lives of the people through region’s economic and cultural development, social progress, regional peace and security, collaboration, mutual assistance in training and research, promotion of Southeast Asian studies and cooperation with regional and international organisations.
ASEAN Community Fact Sheet
ASEAN Political-Security Community Fact Sheet
ASEAN Economic Community Fact Sheet
ASEAN Socio-Cultural Community Fact Sheet

During the bilateral talks between Prime Minister of India Narendra Modi and President of Russia Vladimir Putin, held on December 23-24, 2015, a conclusion of a Free Trade Agreement between the Eurasian Economic Union member countries and India was discussed. Vladimir Putin and Narendra Modi welcomed a successful launch of the Joint Research Group on possibilities to conclude such agreement.
According to First Deputy Minister of Economic Development of the Russian Federation Alexey Likhachev projections, a free trade zone between EAEU and India could be launched in 2020.
As Vladimir Putin emphasized during the talks, “The launch of the Eurasian Economic Union offers new opportunities for expanding business ties. Indian companies can operate on this market with millions of consumers using common, more liberal terms”.

During the bilateral talks, held on December 23-24, 2015, Prime Minister of India Narendra Modi and President of Russia Vladimir Putin discussed measures required for the creation of more favorable conditions for furthering of business ties between the two countries, in particular ensuring greater freedom of movement for entrepreneurs. The parties signed an intergovernmental protocol that would ease the visa requirements for business people in Russia and India. In their joint statement Vladimir Putin and Narendra Modi called for active implementation of this measure and instructed the relevant government authorities to continue the work on modernizing the bilateral agreement on investment protection.
Vladimir Putin and Narendra Modi called for expanding participation of business representatives in trade and business events, in particular St. Petersburg International Economic Forum and Eastern Economic Forum. The leaders also noted that India`s participation in the International Trade Fair INNOPROM in 2016 as a partner country would underscore the event’s status as one of the key international venues for industrial and scientific and technological innovations.
Press-release at the official web-site of the President of the Russian Federation

The official visit of the Prime Minister of India Narendra Modi to Russia was organized on December 23-24, 2015. Narendra Modi and President of Russia Vladimir Putin discussed a progress and prospects of bilateral relations as well as an engagement within the multilateral fora.
During the talks the leaders agreed to expand cooperation within the ASEAN Regional Forum (ARF) on security and ASEAN Defence Ministers Meeting (ADMM) with dialogue partners as well as to strengthen engagement mechanisms to maintain peace and stability in the Asia-Pacific region.
Vladimir Putin and Narendra Modi noted the importance of the East Asia Summits as a platform for a dialogue on a broad range of political and economic issues to promote peace, stability and economic prosperity in East Asia. The participants discussed the possibility to include maritime cooperation as a priority sphere of the EAS agenda .
The leaders of Russia and India expressed their willingness to collaborate closely within other multilateral formats such as Asia–Europe Meeting (ASEM), Conference on Interaction and Confidence Building Measures in Asia (CICA) and Asia Cooperation Dialogue. Russia confirmed its support of India`s application for accession to APEC and promised to closely collaborate on this.

Joint statement (in Russian)

According to the IMF conclusions, the economic outlook for Indonesia remains solid. The Indonesian authorities have taken significant steps in the past few years to strengthen the policy framework. They have demonstrated sound monetary management and a prudent fiscal stance, which was underpinned by historic fuel subsidy reforms in 2015. This has contributed to macroeconomic stability and supported growth. In effect, Indonesia safely navigated a difficult external environment in 2015, characterized by the fall of commodity prices, shifts in global financial conditions, and slower growth of trading partners.
Overall, macroeconomic performance in 2015 has been satisfactory. Economic growth has stabilized and is projected to reach 4.7 percent this year. A moderate acceleration to around 5 percent is forecast in 2016; investment activity would lead the recovery, in particular, public sector spending.
Inflation has fallen sharply and is projected to reach 3 percent at end-2015. Next year, it is expected to remain within the official band (3–5 percent).
The IMF staff report is scheduled to be published in February 2016
Press-release at the official IMF web-site

During the conference of the ASEAN Women Entrepreneurs Network (AWEN) on ASEAN women entrepreneurs and the new regional economy held in Ha Noi, Vietnam on December 14, 2015 more than 150 women entrepreneurs from ASEAN discussed efficient business models, modalities, practices, success stories and lessons learned in fostering women enterprise start-up, development and internationalisation in ASEAN. The event concluded with an adoption of the AWEN work program for 2016-2017 to push the boundaries forward in gender business inclusion and empowerment in ASEAN.
ASEAN Women Entrepreneurship Network (AWEN), established in 2014, is a network of business women in the region, operating to exchange experience, develop and propose initiatives to promote economic and trade activities in order to enhance gender equality, empower and strengthen entrepreneurship skills for women in ASEAN Community; create favorable environment for female-headed enterprises; and raise awareness and support for women entrepreneurship in the region.
Press-release at the official ASEAN web-site

U Win Myint, Myanmar’s Union Minister of the Ministry of Commerce, presented his country’s instrument of acceptance to Director-General Roberto Azevêdo in Nairobi, Kenya on December 16, 2015. Additional instruments of acceptance were received from Viet Nam and Brunei on December 15, 2015.
Concluded at the WTO’s 2013 Bali Ministerial Conference, the TFA contains provisions for expediting the movement, release and clearance of goods, including goods in transit. It also sets out measures for effective cooperation between customs and other appropriate authorities on trade facilitation and customs compliance issues. It further contains provisions for technical assistance and capacity building in this area.
The TFA will enter into force once two-thirds of the WTO membership has formally accepted the Agreement.
In addition to Brunei, Myanmar and Viet Nam the following WTO members have also accepted the TFA: Norway, Zambia, Ukraine, Hong Kong China, Singapore, the United States, Mauritius, Malaysia, Japan, Australia, Botswana, Trinidad and Tobago, the Republic of Korea, Nicaragua, Niger, Belize, Switzerland, Chinese Taipei, China, Liechtenstein, Lao PDR, New Zealand, Togo, Thailand, the European Union (on behalf of its 28 member states), the former Yugoslav Republic of Macedonia, Pakistan, Panama, Guyana, Côte d’Ivoire, Grenada, Saint Lucia and Kenya.
A Trade Facilitation Agreement Facility (TFAF) was also created at the request of developing and least-developed country members to help ensure that they receive the assistance needed to reap the full benefits of the TFA and to support the ultimate goal of full implementation of the new agreement by all members.
Implementation of the WTO Trade Facilitation Agreement (TFA) has the potential to increase global merchandise exports by up to $1 trillion per annum, according to the WTO’s flagship World Trade Report released on October 26, 2015. Significantly, the Report also found that developing countries will benefit significantly from the TFA, capturing more than half of the available gains.
Press-release at the official WTO web-site
More information on trade facilitation and the TFA