00:00Maybe you can start big picture for us. What are Beijing's focal points when it comes to infrastructure outreach in the region as things stand?
00:09So at AIIB, our mandate is clear and our mission is to finance infrastructure for tomorrow.
00:16And that means working with our member countries, which we now have 111 approved members,
00:23to work on their members' sustainable development goals focused on infrastructure.
00:31And talk to us also about when it comes to payments of some of these loans, what is the currency that is typically used?
00:40So we are a U.S. dollar denominated bank, which means we report our results and earnings in U.S. dollars.
00:49But we work with our member countries depending on their preferences for currencies.
00:55We can offer a variety of currencies in the investments that we provide, which could include euros, yens, RMB, Thai baht, Turkish lira, and so on.
01:08Is there more of a push to use more RMB?
01:11It depends on what our member countries and the clients require.
01:16We do not recommend or we do not suggest one currency over the other.
01:23It depends on what their financing needs are.
01:26But this is also coming at a time where China has a goal of internationalization of the yuan.
01:33Is that something that is being put into the equation when it comes to infrastructure investments for the region?
01:39I think, you know, given the current landscape, as you said, where there's dislocation in supply chain and there's companies that look at trade differently,
01:53naturally, naturally, many countries and companies will want to diversify their sources of supply, their sources of financing.
02:02And along with that, there could come a demand for a diversification of currencies in which they trade and finance their operations,
02:12which I think is quite natural in today's environment.
02:15So what are the infrastructure needs for the region?
02:18What are the gaps and how is AIIB looking to fill that?
02:21So let's focus on ASEAN, for example.
02:25There has been a lot of progress in ASEAN in terms of the energy transition.
02:31We see renewable energy being added to the mix quite rapidly and with quite a lot of success.
02:39Where we see more need or more work that needs to be done is in the cross-border connectivity piece.
02:49Because when you look around ASEAN, there are some countries that are more naturally endowed with natural resources.
02:55For example, Laos, which has a lot of hydro resources.
03:01And there are other countries in the region which are not so well endowed.
03:04So connecting ASEAN as an energy system will allow the countries to have lower cost,
03:15will allow, for example, to diversify its export revenues by exporting excess renewable power.
03:23Which makes sense in terms of the ASEAN power grid and the need for the connectivity.
03:28But how do you view this as an investor given the concerns that a cross-border arrangement comes with,
03:36you know, how much compatibility is there when it comes to national systems, for example, or regulatory hurdles?
03:43Absolutely right, Everett.
03:44It is a complex and challenging project that requires many levels of stakeholder engagement.
03:52For example, to harmonize contracts, because each sovereign will have its own energy system,
04:00own energy contracts and tariffs.
04:03In order for there to be a truly integrated regional energy system,
04:08there needs to be a harmonization across the parties in order for that energy to flow fairly and at a competitive rate.
04:17So MDBs like us, which count the ASEAN members as our shareholders,
04:25have that convening power to bring the parties to the table to discuss and agree on a system that works for all.
04:34Our role is to be a neutral partner in this discussion in order to allow for the parties to convene and discuss what would work.
04:45And that's the role that AIIB alongside our MDB partners like the World Bank and ADB are working with our partners to get to.
04:56And recently AIIB signed an agreement with some of the Malaysian lenders, right, to provide support for ASEAN.
05:03But I wonder, is there, you know, how much you can share with us in terms of how much capital is being deployed to Malaysia specifically?
05:09So AIIB has just recently launched into Malaysia as late as October of last year.
05:19And the $6 billion letter of intent that we signed with the four leading banks is our first step into coming into investing in Malaysia.
05:27We believe that partnership is very strong and it's the right one, especially for cross-border and regional connectivity projects.
05:37For example, most of the large Malaysian banks that we signed with have a regional footprint, meaning branches and local presence in the ASEAN countries.
05:49And we, as an MDB, have the global view.
05:53And the partnership of those two elements will allow us to find bankable projects, make the projects bankable,
06:01and therefore make a vision like the ASEAN power grid a step closer to reality.
06:06This is all coming at a time where data center demand is straining power grids.
06:11I wonder, with these renewable energy projects, what do you see as the role that they can play to perhaps alleviate some of that stress on the systems?
06:20Absolutely. Digitalization of the grid is important because AI technologies can be used to predict demand and supply along the grid.
06:29There could also be technological applications that can help balance the load on the grid.
06:37But these all require investment and also patient capital for some of these newer technologies to achieve commercial scale.
06:46MDBs can provide that patient capital to work with these newer technologies to allow for time,
06:54for these technologies to develop from concept to execution.
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