Dr Kantathi Suphamongkhon

DOHA • Thailand has called for the development of an Asian Bond Market (ABM) where Asian economies can invest to promote financial stability, long-term sustainable growth and facilitate economic and financial integration, Dr Kantathi Suphamongkhon, the Thai foreign minister, told reporters yesterday.

Speaking to the media at the conclusion of the 5th Asia Cooperation Dialogue (ACD) yesterday, the minister said, the ABM can help attract investment from oil rich countries. Such countries currently invest heavily in the West.

The minister said, the ABM does not imply that oil producers put their savings into Asia alone. "The ABM will just be another avenue for investment," he emphasised.

Non-Asian countries, he said, will also be welcome to invest in the ABM but at the "ground" level, he added. The ABM would consist of sovereign bonds of several Asian countries, which are open to external investors.

The ABM was discussed at the high-level seminar on enhancing financial cooperation held in Bangkok in March this year.

Thailand will host the 1st ACD Finance Minister's Meeting in July and the possibilities of establishing the ABM will be discussed further, he added.

Dr Kantathi disclosed, the issue of Iran's nuclear program did not feature as a formal issue for discussion during the 5th ACD.

"All ACD members were of the opinion the issue has been and can be discussed at other forums and hence, we decided to focus on issues related to financial cooperation," he added.

Cooperation in the energy sector was also briefly discussed or mentioned during the meeting. These included stockpiling of crude by various giant Asian economies and the establishment of a common Asian crude reserve, among others. "We also discussed the possibilities of oil producers of Asia investing in other ACD countries through Foreign Direct Investment in various sectors.

The minister said, ACD members, during the conference, also agreed to invite private sector to achieve development related goals.

Sri Lanka, along side he said, had proposed the development of Small and Medium Enterprises in ACD countries to help improve living conditions of people.