Sign up | Log in



Home  >>   Daily News  >>   Asean  News  >>   Economy  >>   Asean finance ministers discuss “Hot Money”
NEWS UPDATES Asean Affairs        8  April 2011

Asean finance ministers discuss “Hot Money”

Related Stories

February 2, 2011
Asean economies may overheat

January 26, 2010
IMF raises growth forecast for Asean 5

November 23,2010
Asean integration is coming

November 22,2010
 Thailand's third quarter GDP

October 5, 2010
Thai government told to keep out of wage debate

October 4, 2010
'Normal' growth for Thailand expected

September 23, 2010 
Thai finance minister concerned about currency's strength

Southeast Asian finance ministers meet today in Bali for talks expected to focus on capital controls to shield the region’s booming economies from destabilizing “hot money” inflows.

With Europe’s sovereign debt crisis spreading to Portugal and much of the developing world’s economies still in the doldrums after the global financial crisis, Asia has become a magnet for capital seeking better returns.

But much of the foreign capital has been in the form of volatile portfolio investments which can be withdrawn just as quickly as they were injected, raising fears for stability in economies that are leading the global recovery.

“We can intervene but we don’t know exactly how to do so. In the past few days the inflows have been huge,” Indonesian central bank Deputy Governor Hartadi Sarwono told reporters on Thursday.

“The capital inflows are so massive, and they don’t just flow to Indonesia but in the region.”

Indonesia’s rupiah hit four-year highs against the greenback earlier this week and inflation is running at more than 6.5 percent, underlining concerns that the region’s more successful economies may be close to boiling point.

Indonesian President Susilo Bambang Yudhoyono is expected to open the meeting of finance ministers from the 10-member Association of Southeast Asian Nations (ASEAN) on the resort island of Bali.

Asean chief Surin Pitsuwan will attend, as will World Bank managing director Sri Mulyani Indrawati — a former Indonesian finance minister — and officials from the International Monetary Fund (IMF) and Asian Development Bank.

Indonesia, which holds the current chair of Asean, has said the ministers will also discuss food security and progress toward a planned common market in the region of more than 500 million people by 2015.

The Asean region grew at around 5 percent last year, up from 1.5 percent in 2009 in the aftermath of the global credit crunch.

The Asean community includes Brunei, Cambodia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.

Analysts say Asia’s emerging economies are poised for another year of solid growth in 2011 even if the impact of the catastrophic earthquake and tsunami in Japan remains unclear.

But inflation is a key concern for the region, which faces tighter monetary policies as authorities seek to temper price rises including in food staples such as rice.

The ADB warned this week that some developing economies were showing signs of “potential overheating” and said more flexible exchange rates and capital controls could help curb soaring prices.

Governments have tried a range of responses to hot money but capital controls, such as transaction taxes and currency restrictions, have until recently been scorned by economists as unnecessary interference.

In February the IMF recognized that such controls were justified in the face of destabilizing imbalances in the global economy.

In a recent report on Asian economies, Standard and Poor’s ratings agency said regional central banks might consider further capital controls and other actions to prevent risky asset bubbles.

Within Southeast Asia, it said Singapore’s growth would moderate sharply to 4.5-5.0 percent from 14.5 percent last year, Malaysia would expand 4.8-5.3 percent and Indonesia would grow 5.9-6.4 percent from 6.1 percent.

The Philippines was forecast to grow 5.1-5.6 percent from 7.3 percent and Thailand’s growth would ease to 4.0-4.5 percent from 7.8 percent.

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
  Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below




1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Today's  Stories    8  April 2011 Subsribe Now !
 • Asean finance ministers discuss “Hot Money” Subcribe: Asean Affairs Global Magazine
• Thailand, Cambodia reach agreement on border Asean Affairs Premium
• NGOs criticize Cambodian draft law
Research Reports
on Thailand 2007-2008

•Textiles and Garments Industry

•Coffee industry

•Leather and footwear industry

•Shrimp industry

• Malaysia mass rapid transit on schedule
• Forex reserves climb to new record

• Disasters hit Thai SMEs

• African NGOs criticize developed countries 

• Vietnamese tra fish industry must restructure p

Asean Analysis    April 2011

Advertise Your Brand

• Deforestation in Asean yields predictable results

Sponsor Our Events

Asean Stock Watch    April 2011


• Asean Stock Exchange News


Global News Impacting Asia    17 November 2010


• Bank of America sees Asian inflation


• Lloyd’s increases insurance push in Malaysia


• Wells Fargo analyst on euro


• Obama’s visit to Asia


ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent

• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore
• Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline
• Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More


Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

| Terms of Use | Site Map | Privacy Policy  | DISCLAIMER |

Version 5.0
Copyright © 2006-2021 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand