What AIIB means for ASEAN connectivity
In 2009, the Asian Development Bank (ADB) forecast that from 2010 to 2020, Asia would need US$8 trillion in national infrastructure. The discussion on connectivity in Asia has continued since then, but it was China that seized the moment with its proposal in 2013 for the Asian Infrastructure Investment Bank (AIIB).
Thereafter, last October, 21 member countries entered into a memorandum of understanding and, subsequently, another 36 countries expressed their interest in joining the development bank. The capital base of AIIB was announced as US$100 billion (S$135 billion), with the Chinese stake at US$29.78 billion.
With the AIIB launched within four years of the adoption of the Master Plan of Asean Connectivity, policymakers of South-east Asia are beginning to wonder how this new source of funding can be deployed to resolve some of Asean’s financing needs.
