2016年-SWIFT环球同业银行金融电讯_The_emerging_single_market_in_South-East_Asia_8页_990kb

Summary of the Emerging Single Market in South-East Asia

Core Content

The Association of Southeast Asian Nations (ASEAN) is working towards establishing the ASEAN Economic Community (AEC) by 2015, aiming to create a single market and production base for the region. This initiative is driven by the goal of financial integration, which is considered a key pillar of the broader economic integration strategy. The AEC seeks to enable the free movement of goods, skilled labor, services, and investments, as well as freer capital flows, across member-states.

Main Points

• Financial Integration as a Priority: Financial market integration is at the forefront of ASEAN's economic development. It is seen as a catalyst for broader regional integration and a key driver of growth.
• ASEAN Economic Community (AEC): The AEC aims to create a single market of 600 million consumers, with a projected GDP of over $3.8 trillion by 2018. The region has experienced a growth rate of 6.5% annually since 2008, which is higher than most other regions.
• ASEAN Financial Integration Framework (AFIF): AFIF, along with the ASEAN Banking Integration Framework (ABIF), is a crucial tool for deepening financial integration. ABIF allows Qualified ASEAN Banks (QABs) to operate in neighboring countries with equal treatment as local banks.
• Regional Collaboration: ASEAN countries are collaborating with international organizations such as SWIFT, the ABA, and the WCPSS to promote open standards like ISO 20022. These standards are expected to enhance the efficiency and transparency of cross-border payments and financial transactions.
• Growth of Urban Middle Classes: The rapid urbanization and growth of the middle class in South-East Asia are driving demand for a wider range of goods and services, contributing to the region's rise as a global manufacturing hub.
• Infrastructure and Regulation: The development of regional financial market infrastructures and regulatory harmonization is essential for seamless cross-border transactions. Initiatives like the ASEAN Trading Link and the adoption of SWIFT messaging services are supporting this effort.
• Benefits of Financial Integration: Financial integration is expected to boost economic growth, employment, and trade within and outside the region. It also facilitates SMEs' access to regional markets and reduces transaction costs.

Key Information

• Projected GDP Growth: ASEAN's combined GDP is expected to reach $3.8 trillion by 2018, growing at a 5% annual rate.
• Urban Population Growth: Cities in South-East Asia account for over 65% of the region's output, with the population expected to rise to more than 90 million by 2030.
• SME Support: Financial integration supports SMEs by providing them with access to regional markets through smaller, local banks.
• ISO 20022 Standard: This standard is being adopted across ASEAN to improve cross-border trade settlement, payment efficiency, and transparency.
• SWIFT's Role: SWIFT is playing a significant role in promoting financial integration by supporting the adoption of open standards and facilitating cross-border payment systems.
• Future Outlook: The AEC is expected to become a leading global manufacturing region within the next decade, driven by the growth of the urban middle class and the liberalization of trade and investment flows.

Conclusion

The AEC represents a major step towards a more integrated and competitive regional economy. Through financial integration, ASEAN is creating a more attractive environment for global companies and investors, while also enhancing the efficiency and transparency of its financial systems. The adoption of international standards and the development of common platforms are critical to achieving these goals, and the region is making significant progress in this direction.