Malaysia delays signing Asian banking deal

Fifty-seven founding member countries of the AIIB, which will soon be established under the initiative of China, attended the ceremony in the Great Hall of the People. However, delegates of seven countries, including the Philippines, did not sign the accord to establish the new international financial institute.

The Philippines has been clashing with China over territorial claims in the South China Sea, and bilateral relations have worsened as China has unilaterally moved ahead with its reclamation work in the area.

Sources said this led to the Philippines postponing its signing.

According to the sources, the Philippine authorities in charge of the issue displayed no intention of leaving the AIIB scheme. The Philippine side said the country will continue considering whether it will ultimately join the AIIB.

This is because an escalation in the friction with China could harm the Philippine economy.

Denmark, Kuwait, Malaysia, Poland, South Africa and Thailand also did not sign the accord.

An official of China's Finance Ministry said, "Some countries that have not finished the procedure can sign the accord by the end of this year."

The ceremony was attended by delegates of all the 57 countries. Chinese Finance Minister Lou Jiwei told the delegates: "This is an important step toward the establishment of the AIIB. I express my gratitude for your cooperation."

After each of the countries finishes domestic procedures for approval, the AIIB will likely start operations this year.