“The Business Council of Australia supports the government’s decision to sign the Memorandum of Understanding for the Asian Infrastructure Investment Bank,” BCA Chief Executive Jennifer Westacott said.

“The decision allows Australia to sit with other foundational members to shape the rules, governance and transparency arrangements that guide the operation of the AIIB,” Ms Westacott said.

“If it satisfies Australia’s national interest, Australia should formally join the AIIB.

“Infrastructure investment in Asia is essential to creating sustained economic growth, and the AIIB’s promise of an additional $100 billion will be important to meeting these infrastructure needs.

“The government should encourage the AIIB to tap into best practice investment provisions including working with other institutions like the proposed G20 Global Infrastructure Hub. 

“It is important the AIIB has governance arrangements comparable to other international institutions like the World Bank and Asian Development Bank.

“Funds committed to the AIIB should be drawn directly from the government's existing envelope earmarked for Australia’s overseas aid.

“The BCA recognises the critical role multinational development banks play in funding infrastructure and development in Asia.

“We encourage the government to continue to push for reform in multilateral funds and ensure the banks properly reflect its modern membership,” Ms Westacott said.