Greater capital flows, lower financing costs


While many would associate the Belt and Road Initiative (BRI) with greater infrastructure connectivity among participating countries, promoting financial cooperation and enhancing capital flows are also objectives of the BRI in a bid to establish a transnational platform in order to deepen economic cooperation and financial integration.

As capital flows between BRI countries heighten, there would be an increase in macroeconomic liquidity, defined as the amount of currency circulating in an economy, in countries which are net recipients of such capital flows. This translates into greater availability of credit in these economies. Therefore, businesses now have more funds available to them for their expansion purposes.

Get 20% OFF The Star Digital Access

Monthly Plan

RM 13.90/month

RM 11.12/month

Billed as RM 11.12 for the 1st month, RM 13.90 thereafter.

Best Value

Annual Plan

RM 12.33/month

RM 9.87/month

Billed as RM 118.40 for the 1st year, RM 148 thereafter.

Follow us on our official WhatsApp channel for breaking news alerts and key updates!

Next In Columnists

Seeking a pause on male menopause
An invitation to trouble?
Complex history, deep pain
Compassion has limits, so must immigration
Behind every finish line, a price paid in silence
Gear up and beat the heat at Sepang’s F1 race
Najib still a thorn from behind bars
Clear rules can ease flag fears
From F1 pioneer to talent builder, Alex keeps Malaysia racing
A legend leaves us with lessons

Others Also Read