AIIB sets a stellar new example for international multilateral cooperation

 

Photo: AIIB

 
The 10th Annual Meeting of the Asian Infrastructure Investment Bank (AIIB) Board of Governors was held in Beijing from Tuesday to Thursday. Looking back over the past decade, the AIIB has, amid growing global development challenges, have focused on connectivity, advanced open cooperation, and upheld multilateralism, thus effectively advancing sustainable development at both regional and global levels. Looking ahead, the AIIB will take this meeting as an opportunity to clarify the next strategic focus of development, further build consensus on cooperation, and inject the power of development, openness and cooperation into a world of changes and chaos.

When the AIIB was launched, President Xi Jinping called for making it "a new type of professional, efficient, and clean multilateral development bank." Over the past decade, the AIIB has maintained international, rule-based, and high-standard operations, embarked on a path with high starting point, high-quality development, and high-level cooperation, and pioneered a new model for global financial governance. 

The number of AIIB members grew from 57 to 110, covering 81 percent of the world's population and 65 percent of global GDP. It has approved over 300 projects with a total approved financing exceeding $60 billion, and has mobilized over $200 billion in capital, benefiting 38 members in Asia and beyond. It has consistently maintained the highest AAA credit rating from the three major international rating agencies, and has issued bonds in 20 currencies, raising over $54 billion in financing. 

The AIIB's remarkable achievements can be largely attributed to its unwavering commitment to multilateralism, operating in accordance with international rules, and upholding high standards. Robert Zoellick, former president of the World Bank, once noted that the AIIB has set a good example in the world in terms of governance, transparency, international standards and cooperation.

According to its latest partnership report, as of the end of 2024, the AIIB had co-financed 131 of its more than 300 projects with other multilateral development banks, demonstrating the AIIB's open-minded approach in pooling development synergy and its significant leading and promoting role in strengthening international multilateral cooperation. It has renewed memoranda of understanding with the World Bank, the Asian Development Bank, and the Islamic Development Bank. It actively participates in relevant mechanisms of the G20, contributing the "AIIB approach" to global financial governance. It attends the ASEAN Summit to expand cooperation dimensions with regional organizations and jointly build a regional connectivity network. Faced with the urgent need to close the global infrastructure construction gap, the AIIB adheres to the principle of extensive consultation, joint contribution, and shared benefits, playing a crucial role in mobilizing development resources and reducing the risks of redundant investments.

Currently, as the world economy is facing growth challenges, and the international economic and trade landscape is undergoing major changes, the AIIB, with projects as its carrier and development as its orientation, continuously responds to the urgent needs of its members, especially developing member countries, injecting momentum into their common development. 

In Egypt, the Alexandria Abu Qir Metro Line Project has alleviated urban congestion, reduced carbon emissions, and benefited the travel of hundreds of thousands of people. In Uzbekistan, the Bukhara Region Water Supply and Sanitation Phase II Project has improved the water supply system and optimized public health services. In the Maldives, the Solar Power Generation and Battery Energy Storage Project has facilitated the green transformation of the energy structure. Each tangible and perceptible project that the AIIB is involved in reflects the solid steps taken in deepening and solidifying multilateral development cooperation. As Sri Mulyani Indrawati, governor of the AIIB and Indonesian Minister of Finance, noted, over the past 10 years, the AIIB has accumulated sufficient expertise and experience, and it is not just an emerging bank but has also become a driving force for global development.

As a founding member, key shareholder, headquarters host country and development partner of the AIIB, China has consistently supported its development and expansion. China has collaborated with the AIIB to implement a batch of high-quality projects and proactively shared China's development experiences with developing members. It has made donations to the AIIB's Project Preparation Special Fund and Concessional Financing Fund, providing support within its capacity to low-income members. With the aim to promote the AIIB's new development under the new circumstances, China advocates that the AIIB should provide greater support to members in enhancing their development capabilities, expand international dialogue, exchanges, and collaboration on a broader scale, and better leverage its role as a new-type multilateral platform.

At a critical juncture for deepening global development cooperation, the AIIB, standing at a new starting point, should make even greater achievements. China is willing to work with all parties to jointly support the AIIB in achieving continuous new development, and making new and greater contributions to promoting infrastructure connectivity and sustainable development and to advancing the building of a community with a shared future for mankind.

This article was originally published on the third page of the People's Daily on June 28, 2025.

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Hypocrisy in nuclear order

 

 

ON June 25, the Iranian Parliament voted to cut ties with the International Atomic Energy Agency (IAEA). This unprecedented move followed a military strike on Iran’s nuclear facilities, an act widely attributed to Israel and the United States.

 The decision signals a deep rupture in the already fragile global nuclear order. What makes this moment so alarming is not just the geopolitical tension it fuels but also the glaring double standards it exposes.

 For years, Iran has been a party to the Treaty on the Nonproliferation of Nuclear Weapons or NPT.

 In line with its legal obligations, it has allowed IAEA inspectors into its nuclear facilities and consistently stated at the United Nations and elsewhere that its nuclear programme is for peaceful purposes.

 Iranian leaders, including Supreme Leader Ayatollah Ali Khamenei, have repeatedly declared nuclear weapons as haram (forbidden) under Islamic principles because they cause indiscriminate destruction.

 And yet, despite signing the NPT and cooperating with global watchdogs, Iran continues to face harsh sanctions, diplomatic isolation and now physical sabotage due to its nuclear programme.

 Meanwhile, Israel, long believed to possess a nuclear arsenal, has never signed the NPT. Its nuclear programme remains beyond scrutiny, its facilities are not inspected and it faces no international sanctions or IAEA investigations.

 This nuclear opacity is tolerated, if not tacitly encouraged, by Western powers that claim to uphold non-proliferation principles.

Let’s ask the hard question: Which of these two countries poses a greater risk to international peace and security?

 Iran has not initiated a war in modern history. Israel has launched military operations across its region, from Lebanon and Syria to Gaza and Iraq.

 Iran’s nuclear programme is monitored; Israel’s is not. Yet, it is Iran that is painted as the threat.

 If Iran eventually withdraws from the NPT and begins developing nuclear weapons, the blame will not lie with it alone. It must be shared by those who weaponised the non-proliferation regime to target some states while shielding others.

 This hypocrisy corrodes the integrity of international law. The NPT is built on three pillars – non-proliferation, disarmament, and the right to peaceful use of nuclear energy.

 Yet, nuclear-armed states have not disarmed, and non-nuclear states like Iran are punished even when they comply.

 There is a way forward, one that demands honesty and universal responsibility. The Treaty on the Prohibition of Nuclear Weapons (TPNW), adopted by the UN in 2017, offers a path towards a world free of nuclear weapons. But none of the major nuclear powers have joined it. Instead, they cling to arsenals that they deny others.

 Nuclear weapons are not tools of peace; they are instruments of mass death. As long as some states are allowed to keep them, the world will continue to move closer to catastrophe.

 If we are serious about peace, then no country should be above the law. And the only sustainable global security is one without nuclear weapons, not one built on nuclear privilege.

 BY PROF DR MOHAMMAD NAQIB EISHAN JAN Ahmad Ibrahim Kulliyyah of Laws International Islamic University Malaysia

 

New bank tax backlash, Financial access at risk: Fomca

 

Govt urged to revise service tax on industry to not burden public

While basic banking services are exempt from the 8% service tax starting July 1, trade and consumer groups are unhappy that it has been imposed on other fee-based transactions. They warn of added burden on firms and customers.

Ahead of the implementation of service tax on financial services on July 1, groups have voiced concerns, saying that this is likely to drive up costs for businesses and the regular people.

Federation of Malaysian Consumers Associations (Fomca) vice-president Datuk Indrani Thuraisingham said ordinary Malaysians would be the most impacted by the 8% service tax on fee-based financial services.

Indrani said the small charges may seem as a trivial amount but it is a huge sum when multiplied by the millions of transactions.

“When Malaysian banks are riding on massive profits and control trillions in assets, why should struggling consumers be asked to chip in more.

“This is taxing basic financial access, not luxury,” said Indrani.

Indrani called on Bank Negara Malaysia and the Finance Ministry to immediately review this new ruling.

“The principle of consumer fairness must be upheld,” said Indrani, adding that banks should absorb part of this tax, especially on low value and high-volume services.

Indrani also said consumer groups should be given the space to scrutinise every fee schedule so that banks should be held accountable and thereby prevent opportunistic fee hikes disguised as tax adjustments.

“If this goes ahead unchecked, the government can expect deeper financial exclusion, rising household debt and widening inequality,” she said.

Fomca secretary-general Saravanan Thambirajah said the announcement by Putrajaya raises concerns for everyday consumers on how this would affect their financial service experience.

“In real terms, this tax means that consumers will see higher charges for many common services offered by banks.

“Even services used by small businesses and self-employed individuals such as overdraft facilities, bank guarantees and remittance services are likely to be affected,” said Saravanan.

Saravanan also said there is a concern that this move would set a precedent for banks to gradually increase fees under the guise of tax compliance.

“Once consumers grow accustomed to higher charges, more subtle fee revisions should be introduced over time,” said Saravanan.

SME Association of Malaysia national president Chin Chee Seong said as the 8% service tax rate predominantly affects commission-based financial services, SMES are likely to see an increase in cost of doing business.

Chin said businesses are already bracing for the SST on commercial rental and leasing services, barring which rental costs have already increased by 20%-30% from a year ago.

“On top of that, they will also be dealing with the mandatory 2% Employees Provident Fund contribution for foreign workers and the restructuring of electricity tariff.

“The cost of doing business is getting higher and higher. It will definitely affect our cashflow. It doesn’t look good for the industry and the economy,” Chin said.

“If all of these are coming together, how are we going to plan our next few months especially as we have passed the midterm. It is going to be tougher for us to do business,” Chin added.

Chin said there has to be more clarity on certain aspects of the tax system for instance on the RM500,000 threshold on taxable financial services.

“Items such as luxurious items, (imported) fruits, I think that is clear cut and they can go ahead. But when it comes to financial services such as leasing and rental, I think that should be deferred first,” he said.

“The government should understand that we are not against their policies but these policies must be more considerate of the difficulties of doing business. The cost of doing business is high while consumer spending is low,” Chin said.

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