ASEAN Finance Ministers Outline Priorities for Financial Integration, Digital Payments and Climate Finance

ASEAN finance ministers and central bank governors have reaffirmed their commitment to deeper regional financial integration, expanded digital payment connectivity, and stronger climate finance cooperation following the 13th ASEAN Finance Ministers’ and Central Bank Governors’ Meeting (AFMGM). The meeting reviewed economic conditions across the region, assessed progress on financial cooperation initiatives, and outlined policy priorities aimed at strengthening resilience, improving financial inclusion, and supporting sustainable growth across ASEAN member states.

The meeting, co-chaired by Frederick D Go, Secretary of the Department of Finance of the Philippines, and Eli M Remolona Jr, Governor of the Bangko Sentral ng Pilipinas, brought together regional leaders to review financial cooperation initiatives and assess emerging economic risks. According to the official joint statement from the 13th AFMGM, discussions focused on strengthening financial stability, expanding digital financial services, and coordinating policy responses to global economic uncertainty.

ASEAN Economic Outlook Remains Resilient

Ministers noted that ASEAN’s economic performance remains robust despite external pressures. Regional growth is projected at around 4.5 per cent in 2025, supported by strong domestic demand, infrastructure investment, continued capital inflows, and a gradual recovery in exports.

Foreign direct investment into the region exceeded US$230 billion in 2024, while the tourism sector has also rebounded strongly. Visitor arrivals reached 147 million in 2025, reinforcing economic connectivity across Southeast Asia.

However, ministers highlighted growing external risks. Geopolitical tensions in the Middle East, trade uncertainty, and energy market disruptions could affect inflation, capital flows, and financial market stability. ASEAN leaders emphasised the need for continued vigilance and closer policy coordination to mitigate these risks.

Priority Areas for Regional Financial Cooperation

The Philippines introduced the theme for its ASEAN chairmanship in 2026: “Navigating Our Future, Together”. Under this framework, finance ministers endorsed three priority economic deliverables focused on strengthening the region’s financial architecture.

• Sustainable and resilient capital markets: Expanding sustainable financing frameworks and improving transparency in regional capital markets.
• Regional payments connectivity: Accelerating interoperability between national payment systems and improving cross-border payment efficiency.
• Financial health and inclusion: Developing a regional framework to measure financial well-being and support policies aimed at vulnerable populations.

Officials also highlighted efforts to strengthen supervisory cooperation, improve corporate governance standards, and develop regulatory tools to support integrated regional financial markets.

Expanding Digital Payments and Financial Inclusion

ASEAN’s cross-border payments initiative continues to expand. As of December 2025, the region had established 29 QR code and person-to-person instant payment linkages within ASEAN and with external partners.

These payment connections are seeing growing adoption. In 2025, QR-based cross-border payments reached 36.2 million transactions worth US$716.4 million, while person-to-person transfers totalled 1.6 million transactions valued at US$305.7 million.

Ministers emphasised that safe and affordable digital payment channels are increasingly important for households, businesses, and migrant workers. Work will continue under the Roadmap for Instant Payment Connectivity to address operational risks, including fraud and scams, while improving oversight and regulatory coordination.

To strengthen financial literacy, ASEAN also launched the Digital Financial Literacy Core Competency Framework in February 2026, developed with the Organisation for Economic Co-operation and Development. The framework is intended to guide national programmes that support the safe use of digital financial services.

Strengthening Regional Financial Stability Mechanisms

Ministers endorsed several initiatives aimed at reinforcing regional financial resilience. Among these was the re-establishment of the ASEAN Swap Arrangement, which provides short-term foreign exchange liquidity support to member states experiencing balance-of-payments pressures.

The meeting also endorsed updated guidelines for the ASEAN Banking Integration Framework, designed to provide greater clarity for cross-border banking integration while recognising the differing levels of development among member states.

Work is also continuing on capital account liberalisation, improved monitoring of regulatory changes, and expanded use of local currencies in cross-border transactions to support intra-regional trade and investment.

Scaling Up Climate Finance Across the Region

Climate finance featured prominently in discussions, with ASEAN leaders emphasising the need to mobilise both public and private investment to support climate adaptation, mitigation, and loss-and-damage responses.

The region is working to improve access to international climate funding mechanisms such as the Green Climate Fund and the Adaptation Fund. Ministers also encouraged the development of blended finance mechanisms and risk-sharing tools to attract private capital into climate-related projects.

In parallel, ASEAN is developing supporting frameworks including updated versions of the ASEAN Taxonomy for Sustainable Finance, guidance on voluntary carbon markets, and tools to improve sustainability disclosures for businesses and supply chains.

Long-Term Regional Financial Cooperation

Ministers endorsed the ASEAN Finance Sectoral Plan 2026–2030, which outlines priorities for financial integration, digital transformation, and sustainable finance across the region. The Asian Development Bank has proposed establishing a dedicated facility of up to US$30 billion between 2026 and 2030 to support the implementation of ASEAN Community Vision 2045.

The meeting also reviewed governance reforms under Project Revive, aimed at streamlining ASEAN finance cooperation structures, improving coordination between sectoral bodies, and accelerating regional decision-making.

Participants concluded by emphasising the importance of continued collaboration between governments, financial institutions, and business groups to strengthen financial markets, expand digital financial services, and support sustainable economic growth across ASEAN.