11 September 2015

Prospects and Challenges of the Development of ASEAN Exchanges

Recognising the potential of ASEAN regional integration through the ‘ASEAN Exchanges’ collaboration of seven stock exchanges.

Recognising that a synergised Association of Southeast Asian Nations (ASEAN) is more than the “sum of its parts”, the region has progressively transformed into a formidable economic and political bloc during the past several decades. Since 2005, intra-ASEAN trade value almost doubled, reaching USD 602 billion in 2012. Together, the ten ASEAN member countries collectively ranked as the world’s seventh-largest economy, with a combined gross domestic product (GDP) of USD 2.4 trillion in 2013.

Against the backdrop of these developments, the finance ministers of the ASEAN countries came together and started a series of initiatives to achieve regional economic integration including the development of ASEAN Exchanges. The purpose of this research project is to examine the challenges surrounding the creation of regional market infrastructure and the promotion of investment flows across ASEAN, in the hope of deepening the understanding of (i) the institutional challenges in integrating the securities market across ASEAN, and (ii) how these institutional disparities are progressively bridged towards the realisation of the ASEAN Exchanges vision.

by Carol Hsu, Sia Siew Kien

  • Nanyang Business School; Singapore
  • National Taiwan University