Logo of Phnom Penh Post newspaper Phnom Penh Post - Asean bankers expect 4IR to boost economies

Asean bankers expect 4IR to boost economies

Content image - Phnom Penh Post
The 4IR is marked by technological breakthroughs in robotics, AI, nanotechnologies, quantum computing, biotechnologies and the ‘Internet of Things’. afp

Asean bankers expect 4IR to boost economies

Vientiane times/ANN: The Fourth Industrial Revolution (4IR) is impacting on the region’s economic ecosystems, a top banker has said.

“We need to build both our readiness and capacity to leverage as much benefit as we can from the economic potential of the 4IR while also working towards sustainable economic management,” Asean Bankers Association (ABA) chairman Phoukhong Chanthachack said at the 48th Asean Banking Council Meeting held in Brunei recently.

4IR theory says we are now living through the fourth radical change of society since the Industrial Revolution transformed the world in the 18th century.

The 4IR is characterised by a fusion of technologies and blurring of lines between the physical, digital and biological spheres known together as cyber-physical systems.

The 4IR is also marked by technological breakthroughs in robotics, artificial intelligence, nanotechnologies, quantum computing, biotechnologies and the ‘Internet of Things’. Fifth-generation wireless technologies (5G), additive manufacturing, 3D printing, and fully autonomous vehicles are signs of the 4IR taking place.

“There must be a move from analogue to digital systems in our banking sector, given the significant economic potential of these transitions,” Phoukhong said.

Phoukhong is also the Lao Bankers Association chairman and the Banque pour le Commerce Exterieur Lao Public general managing director.

“This new banking frontier is estimated to be worth up to $625 billion by 2030 or about eight per cent of Asean’s GDP for that year. It is one of the five strategic pillars in the Asean Connectivity Master Plan,” he said.

The meeting, hosted by the Brunei Association of Banks, saw Asean’s top bankers discussing topics of regional importance to the sector.

This included developments in the finance sector, implementation of measures to increase outside participation in the region’s markets and introduction of best practice initiatives. Sustainable and responsible financing plus the need to foster connectivity among member countries by digitising the industry was also discussed.

An official statement from the conference predicted Asean’s banking sector to be a clear winner from the region’s rapid growth in GDP as conditions such as these usually drive strong growth in demand for financial services. This includes both retail and corporate banking services and in financial management.

Asean members endorsed proposals by its three permanent committees – Cooperation in Finance, Investment, Trade and Technology, Asean Inter-Regional Relations and Banking Education.

The committee for Cooperation in Finance, Investment, Trade and Technology will continue to promote sustainable and responsible financing by conducting awareness and capacity building workshops in the Asean countries. It also shared information about opportunities available in green bond financing with member countries.

The Asean Business Advisory Council and ABA agreed to work together to support the Banking Sub-Sector Working Group which is responsible for keeping abreast of issues that hinder the move of Asean’s banking sector into the digital era.

Committee members warned the initiative may be overly ambitious and that it faces a lot of challenges. However it could also be a significant move towards an economically integrated Asean region in the near future.

The 48th Asean Banking Council Meeting was held on November 7 and 8.

MOST VIEWED

  • Cambodia armed with money laundering laws

    Money laundering will now carry a penalty of up to five years in prison while those convicted of financing terrorists will be jailed for up to 20 years, according to new laws promulgated by King Norodom Sihamoni and seen by The Post on Thursday. Comprising nine

  • Schools to be reopened in ‘three stages’

    With guidance from Prime Minister Hun Sen, the Ministry of Education, Youth and Sport, is in the process of reopening schools in three stages. But no timeline has been set, ministry spokesperson Ros Soveacha said on Thursday. Soveacha said the first stage will be to

  • Thai border crossings eased

    The Cambodian Embassy in Thailand said in an announcement on Wednesday that Thailand’s government has allowed certain passengers from several countries to enter its borders. The visitors must go back to their country immediately after their duties in Thailand are fulfilled, the embassy said.

  • Gov’t says tourism recovers slightly despite pandemic

    The Ministry of Tourism and the Phnom Penh municipal administration have recognised 33 tourism businesses in the capital which have consistently implemented safety measures for tourists and adhered to the code of conduct issued by the ministry. Recently, the ministry announced that tourism businesses had to

  • Mull ASEAN border opening, PM urges

    Prime Minister Hun Sen has requested that ASEAN launch a scenario for gradually reopening cross-border travel and trade between countries in the region. He said ASEAN has had more success combating Covid-19 compared to other regions. The prime minister’s request was made at the

  • Ministry reports 11 new Covid-19 cases, reiterates vigilance

    Minister of Health Mam Bun Heng has urged people to continue practising virus prevention techniques after 11 people tested positive for Covid-19 within two days after arriving in the Kingdom. Speaking on Sunday, Bun Heng stressed the importance of washing hands, wearing masks or scarves when

  • Nine on Indonesia flight Covid-19 positive

    The Ministry of Health on Saturday confirmed nine more imported cases of Covid-19. The nine ‒ eight Cambodians and one Indonesian, aged 22 to 26 ‒ arrived in Cambodia on Thursday via a direct flight from Indonesia and are receiving treatment at the Khmer-Soviet Friendship Hostipal in Phnom Penh.

  • Kingdom’s financial sector healthy

    Cambodia's financial sector remains on a sustainable growth path despite the Covid-19 pandemic squeezing crucial industries, National Bank of Cambodia (NBC) governor Chea Chanto said. Tourism, garments and footwear have borne the brunt of the Covid-19 impact, he said, whereas the financial and agriculture sectors

  • Vietnam told to remove border tents

    Kandal provincial governor Kong Sophoan has ordered local authorities to prohibit the construction of buildings in areas bordering Cambodia and to report any irregularities immediately. Recently, Vietnamese officials removed another seven tents from the border area with Cambodia. His remarks were made on Wednesday afternoon

  • Migrant workers set to return from Malaysia

    The Ministry of Foreign Affairs and International Cooperation confirmed on Thursday that 158 Cambodian students and migrant workers will fly home from Malaysia on Friday morning. This is the second flight to bring Cambodians home from Malaysia. A ministry notice said Malaysia Airlines Flight MH754 will