Excellencies, distinguished guests, ladies and gentlemen,

Good morning!

It is my great pleasure to welcome you to the 3rd ASEAN+3 Economic Cooperation and Financial Stability Forum. This year, we are privileged to co-organize this forum with the International Monetary Fund and the Bank of Korea. This collaboration underscores our shared belief that regular, open and insightful dialogues are key in deepening cross-border cooperation. I would also like to extend my sincere gratitude to the Korean government for its steadfast support, and to warmly welcome the Deputy Prime Minister of the Republic of Korea, Mr. Sang-mok Choi, who is with us today. My gratitude also goes out to all our partner institutions for their invaluable contributions in organizing this event, and to our distinguished speakers for sharing their insights and unique perspectives. Lastly, I would like to express my appreciation to all participants, both here in Seoul and online, for your active engagement.

The ASEAN+3 region stands at a crucial moment—one that demands both reflection on our resilience and clear-eyed assessment of the challenges ahead.

Consider our present circumstances. Half a decade since the pandemic and multiple shocks thereafter, our region has demonstrated remarkable resilience. Our economies have maintained robust growth, with regional GDP expected to expand by 4.2 percent this year, and to remain above 4 percent in the next two years. Inflation remains well-contained, and our financial systems remain fundamentally sound despite higher volatility and headwinds. Indeed, contributing more than 40 percent of global GDP growth, ASEAN+3 continues to be the engine of global growth.

Yet beneath this favorable outlook lies immense uncertainty. Shifting political and policy landscapes in major economies, persistent geopolitical tensions, and evolving global trade dynamics add layers of complexity to an already challenging environment. We must navigate these challenges with both confidence and caution.

Our longer-term prospects reveal the contrast of our strength and challenges more strikingly. While ASEAN+3 is projected to remain the world’s fastest-growing region, we must acknowledge a sobering reality: our growth trajectory is moderating. We project average regional growth of 4.3 percent for the remainder of this decade, compared with 5.4 percent between 2011 and 2019. This is not a cyclical slowdown but reflects a deeper, more structural change that has begun earlier.

The region’s long-term growth potential has slowed since the Global Financial Crisis. Our productivity growth has weakened and pandemic scarring effects are still felt in many economies. Most of our middle-income member economies have remained middle income for decades, with high-income breakthroughs still being elusive. Even for our high-income member economies, growth has slowed and – as our internal research is showing – productivity gaps have in fact widened against the most productive economies outside the region.

In addition, like the rest of the world, we are now faced with the pressing challenges of aging population, climate risks and rising geopolitical tensions. What sets ASEAN+3 apart, however, is the degree in which we are confronted with these challenges.

• Our region is aging more rapidly than others.
• Our region carries both the largest global carbon footprint and the highest climate risks.
• And – as it is becoming increasingly clear now – our region now stands squarely at the epicenter of global geoeconomic realignment.

This concentration of secular challenges in our region demands not just attention, but transformation.

So, what should be our response?

First, we must be ready. This means rebuilding policy space and enhancing policy flexibility. Now, while our macroeconomic fundamentals remain sound, our policy buffers are more constrained than before the pandemic. Monetary authorities must maintain vigilance against potential resurgence of inflation. Fiscal policies need to balance buffer rebuilding with growth support. We must also address financial sector vulnerabilities that could amplify external shocks. All these require careful calibration—a delicate but necessary balance in today’s challenging environment.

Second, we need to reinvigorate long-term growth through new strategies that align with current realities. This includes fostering both technological and institutional innovations—twin pillars of transformation in our rapidly evolving world. While technological advancement offers new solutions for our long-term structural challenges, institutional reform and innovation enable our policies and frameworks to adapt nimbly to emerging realities. Like crossing a river by feeling the stones, we must be both bold in our vision and pragmatic in our approach. We must revitalize structural transformation in ways that promote resilience, inclusion and sustainability. The green transition, digital transformation, and services-led growth present new pathways for development that we must actively explore through continuous experimentation and learning.

Third, we must intensify regional cooperation. In an increasingly fragmented world, ASEAN+3 must stand as a beacon of international cooperation. Our response to shared challenges must transcend national boundaries—whether in strengthening supply chain resilience, advancing digital integration, or coordinating climate action. We must continuously deepen our financial cooperation, harmonize our policy approaches, and build stronger institutional linkages, to turn our collective challenges into opportunities for shared growth.

AMRO remains committed to supporting these efforts. We are continuously strengthening our surveillance and research capabilities, and enhancing our regional financial safety net through the Chiang Mai Initiative Multilateralization. We are exploring more robust financing structures and facilities for the future ASEAN+3 Regional Financing Arrangement for more effective crisis prevention, mitigation and resolution. These measures would ensure that AMRO always stands ready to help member economies build resilience and prepare for future challenges.

The theme of this year’s Forum—”Sustainable Growth: Reinforcing Resilience, Revitalizing Productivity”—captures the major tasks before us. Through our discussions today, let us aim to identify concrete solutions to secure sustainable, resilient, and inclusive growth for our region.

Periods of great challenge also present opportunities for transformation. As a Korean proverb wisely states—even a sheet of paper is lighter when carried together. With collective wisdom and concerted action, we can navigate these crossroads successfully and chart a course toward continued prosperity.

I now declare the Third ASEAN+3 Economic Cooperation and Financial Stability Forum open.

Thank you.