KUALA LUMPUR (Oct 17): Malaysia has reiterated its stand in supporting the establishment of an Asian Monetary Fund (AMF), saying that it has the potential to provide a safety net to Asian countries that may be affected in the event of another financial crisis, such as the 1997 Asian Financial Crisis.

In a parliamentary written reply to a question by Oscar Ling Chai Yew (Pakatan Harapan-Sibu), Prime Minister cum Finance Minister Datuk Seri Anwar Ibrahim said Malaysia is of the view that a more in-depth study needs to be carried out as a preparation for countries in the Asian region to come up with a more comprehensive mechanism that meets regional needs.

The involvement, acceptance and readiness of countries in the Asian region will need to be taken into account for the establishment of the AMF to guarantee mutual socio-economic well-being.

"The AMF is the next step in cooperation among countries in the region. The AMF will involve collaboration between Malaysia and other countries to improve existing mechanisms, such as the Chiang Mai Initiative Multilateralisation and the Local Currency Settlement Framework," Anwar said.

However, Anwar revealed that the proposal to establish the AMF was not raised in both the recent Asean Summit in Jakarta and the Belt and Road Summit in Hong Kong.

It was previously reported that Anwar had called on the establishment of the AMF, akin to the International Monetary Fund, during his official visit to China in March.

Anwar was quoted as saying that China is open to talks with Malaysia on forming the AMF, amid the world’s growing impatience with the US dollar’s dominance.

The AMF was an idea that Japan first proposed in 1997, following the Asian Financial Crisis.

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