MANILA --The Asian Development Bank (ADB) is poised to adapt to the changes brought about by rising income levels in Southeast Asian countries and thus, remaining a relevant force in the region.
In a media briefing at the 51st Annual ADB Meeting here Friday, ADB Director General for Southeast Asia Ramesh Subramaniam said the Bank has anticipated these changes, therefore it will adjust the kind of assistance it provides to these countries accordingly.
Subramaniam said some countries in the region are all set to graduate from least developed countries or LDC status by 2020, while many are set to move to upper middle income economy status by 2022 or 2025. “We anticipate these changes. And we will need to change assistance as well as the nature of assistance that we provide,” he said, adding that this is part of ADB’s Strategy 2030.
ADB’s landscape of assistance will be different by 2025. The Bank will pursue financial innovation to serve new financing demands in the region, Subramaniam revealed.
In the case of middle income economies, he cited that there will be more demand for knowledge solutions, high-level technology, technology solutions for infrastructure projects, interoperability for different modes of transport, urban planning and city development. “We believe that there has to be a lot more leveraging and catalyzing of different sources of financing that ADB needs to attend,” Subramaniam said.
For countries like the Philippines, Thailand, Indonesia, and Vietnam, which are seen to have access to other financing means like the capital markets, the ADB will seek opportunities where it can add value. “We’re quite excited by it. It offers a lot of interesting opportunities for public and private cooperation,” he noted.
Meanwhile, Subramaniam said ADB has not seen any overheating of the economy in the Philippines. He mentioned that aside from the robust actual economic growth, potential growth is also increasing. “This means, there’s even further room for the Philippine economy to grow,” he stressed.
Subramaniam said with the local manufacturing growth and increasing labor productivity, higher investments in manufacturing and technology is seen in the horizon.
The Philippines is the host country for the 51st Annual ADB Meeting. (PNA)
