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Assessment of ASEAN Capital Market Integration

Status : Completed

Within the AEC Blueprint, strengthening ASEAN capital market development and integration is part of the effort to establish ASEAN as a single market and production base by 2015. The development of deep, liquid and efficient capital markets will enable the ASEAN region to channel its huge savings into productive investments and diversify the source of funding for economic development. Bonds and equities account for an increasing share of financial assets in ASEAN, although banks still dominate the region’s financial system. Regional cooperation such as Asian Bond Markets Initiative (ABMI), ASEAN Bond Funds, ASEAN Capital Markets Forum (ACMF) and ASEAN Working Committee for Capital Market Development (WC-CMD) is aimed at promoting and increasing financial assets in ASEAN. This also demonstrates that policy makers have implemented initiatives and taken steps to increase the scope of capital market as an important channel to economic development in the region. There are still, however, challenges to develop and integrate ASEAN capital markets. These include the diverse level of capital market development across ASEAN Member States (AMS), fragmented capital market in AMS, the small share of institutional and private sector investment in financial assets in ASEAN and the prudence approach adopted by the AMS in integrating the ASEAN capital market.

This project provides an in-depth analysis of these challenges by conducting a comprehensive assessment study on the current status of capital market development and integration in each AMS and in ASEAN region. The study engaged with wide range of stakeholders including government institutions, industries, businesses, academia, civil society organization and, particularly, the private sector. It provided recommendations, including a workplan, to the AMS, relevant sectoral bodies/working groups and ASEAN Secretariat to enable them to take strategic and well-informed actions to expedite capital market development and integration in ASEAN region.

This project was completed in 2013.

Result of this project is not available for public. Please contact the ASEAN Secretariat Financial Integration Division for further information.

Related project: 
Capacity Building for ASEAN Financial Integration Framework

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