This document provides a summary of a report on the capital market infrastructure in ASEAN+3 countries. It analyzes the state of development of capital markets across different countries in the region. The report finds that capital market development varies significantly, with more advanced markets in countries like Singapore, Malaysia, Thailand, China, Japan, and South Korea. Other countries like Cambodia, Lao PDR and Myanmar have less developed financial systems and capital markets that are still in early stages of development. The report also outlines the regulatory frameworks and financial authorities that oversee the capital markets in different ASEAN+3 countries.

1. FINAL REPORT: SWOT ANALYSIS ON THE CAPITAL MARKET INFRASTRUCTURE IN THE ASEAN+3 COUNTRIES AND ITS POLICY IMPLICATIONS
FINAL REPORT: SWOT ANALYSIS ON THE CAPITAL MARKET INFRASTRUCTURE IN THE ASEAN+3 COUNTRIES AND ITS POLICY IMPLICATIONS
FINAL REPORT:
SWOT ANALYSIS ON THE CAPITAL MARKET
INFRASTRUCTURE IN THE ASEAN+3 COUNTRIES
AND ITS POLICY IMPLICATIONS
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2. RESEARCH BACKGROUND
 ASEAN+3 economies have been recovering from the global financial crisis, and
posting steady growth in 2012.
 Policy uncertainty, private deleveraging, fiscal drag, and impaired credit
intermediation continue to weigh on global growth prospects.
 ASEAN+3 region remain vigilant of the unintended negative side effects stemming
from an extended period of global monetary easing on the region as well as on the
risk of global financial markets sentiment
 ASEAN+3 Strategy for enhancing market integration and regional financial stability:
Chiang Mai Initiative Multilateral (CMIM), ASEAN+3 Macroeconomic Research Office
(AMRO).
 Capital market development in the ASEAN+3 region is vary.
 This study proposes to analyse the recent development of capital markets
infrastructure and its policy implications in the ASEAN+3, and provide
recommendations on how to enhance capital markets integration and financial
stability in the region.

3. FINAL REPORT: SWOT ANALYSIS ON THE CAPITAL MARKET INFRASTRUCTURE IN THE ASEAN+3 COUNTRIES AND ITS POLICY IMPLICATIONS
FINAL REPORT: SWOT ANALYSIS ON THE CAPITAL MARKET INFRASTRUCTURE IN THE ASEAN+3 COUNTRIES AND ITS POLICY IMPLICATIONS
ASEAN+3
CURRENT ECONOMY DYNAMICS
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4. Figure: ASEAN Countries GDP Growth Constant Price, 1998-Q3/2013 (YoY,%)
Economic Growth of key economics in the region show lower than expected
Source: IMF, CEIC (2013)
 ASEAN member economics yet meet their full potential economic growth;
 Philippines impress not only ASEAN but also Asia at-large with their respectively recorded
growth averaging 7% along 2013;
 ASEAN region becoming a refugee place by foreign investors from the continuing after-effects of
global financial meltdown.

5. Figure: China, Japan, South Korea GDP Growth Constant Price, 1998-Q3/2013 (YoY,%)
Economic Growth of key economics in the region show lower than expected
Source: IMF, CEIC (2013)
 China’s as the world’s second largest economy recorded performance in 2013 as the slowest
pace expansion on economy ever recorded in 14 years;
 Japan economy at the first half of 2013 seems to show signs of weakening but fortunately it
limitedly saved by the “Abenomics”;
 South Korea record confident economic growth supported by front-loaded government spending
and positive contribution from private sector.

6. Table: ASEAN+3 Stock Market Index Growth, 2009-2013 (YoY, %)
Regional stock market record positive trend of growth
Source: Bloomberg (2014)
 The growths which happen in regional stock market is showed as the optimism for regional
economic prospectus through the eyes of foreign investors.
 The flood of foreign capital inflow then resulted to the rapid growth in real estate prices,
increasing domestic consumption and accumulating household debt .

7. Table: ASEAN+3 Exchange Rate Development, 2009-2013 (YoY, %)
Global trade uncertainty highly affect the regional exchange rate fluctuation
Source: Bloomberg (2014) *= During this year Myanmar having currency adjustment
 The declining in the trade of balance on the most countries in the region then turn into the
weakening of regional currency compare to United States Dollar (US$).
 This pressure in regional currency potentially to be further since the Federal Reserve of US
and Bank of Japan plan to having quantitative easing program

8. FINAL REPORT: SWOT ANALYSIS ON THE CAPITAL MARKET INFRASTRUCTURE IN THE ASEAN+3 COUNTRIES AND ITS POLICY IMPLICATIONS
FINAL REPORT: SWOT ANALYSIS ON THE CAPITAL MARKET INFRASTRUCTURE IN THE ASEAN+3 COUNTRIES AND ITS POLICY IMPLICATIONS
ASEAN+3
FINANCIAL SECTOR DEVELOPMENT
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9. ASEAN+3 FINANCIAL SECTOR COOPERATION
 The ASEAN Economic Community (AEC) blue print liberalization measures of the financial
services sector should allow members to ensure orderly financial sector development and
maintenance of financial and socio-economic stability.
 Two principles of financial liberalization: First, the Liberalization is through ASEAN minus X
formula where countries that are ready to liberalize can proceed first and be joined by
others later. Second, the liberalization process should take place with due respect for
national policy objectives and the level of economic and financial sector development of
the individual members.
 Roadmap for Monetary and Financial Integration of ASEAN (RIA-Fin). Endorsed by the
ASEAN Finance Ministers Meeting (AFMM) that consists of four areas: (a) Capital Market
Development, (b) Liberalisation of Financial Services, (c) Capital Account Liberalisation and
(d) ASEAN Currency Cooperation, with the ultimate goal of greater economic integration in
ASEAN by 2015.
 In finance and monetary cooperation, the focus continues to be on the implementation of
the Chiang Mai Initiative Multilateralisation (CMIM) and the Asian Bond Market Initiative
(ABMI). The CMIM is supported by the ASEAN Plus Three (APT) Macroeconomic Research
Office (AMRO) in Singapore, which commenced its operations in 2011.

10. Figure: Financial Assets in ASEAN+3 Countries, 1997-2012 (% of GDP)
From bank dominated industries to more financial deepening
600
Brunei Darussalam
Japan
Myanmar
Cambodia
Republic of Korea
Philippines
People's Republic of China
Lao PDR
Singapore
Indonesia
Malaysia
Thailand
500
400
300
200
100
0
1997
1998
2000
2005
2008
2009
2010
2011
2012
Source: IMF, World Bank, Asian Bond Online, CEIC (2013)
 Transformation upon regional banking industry into more cross border banking have been slow
to develop.

11. Table: Market Capitalization to GDP Ratio
ASEAN Capital Market has a significant performance progress for the recent years
Source: CEIC, Bloomberg (2014)
 Financial deepening is vary between ASEAN+3 member economics.

12. Figure: Bank Assets, Stock Market Capitalization and Bond Market Capitalization in
ASEAN+3 Countries, 1997 and 2012(% of GDP)
Financial deepening in regional economy members are vary
Source: IMF, World Bank, Asian Bond Online, CEIC (2013)




Countries with larger stocks of financial assets tend to have better developed capital markets.
Singapore, Malaysia, Thailand, China, Japan, and Korea were categorized as advanced financial.
Philippines, Indonesia, and Vietnam have medium development of the financial system. It can be
said that those countries have a complete financial structure (banks, stock and bond markets)
but at a low level and characterized by bank dominance.
Brunei Darussalam, Lao PDR, Myanmar, and Cambodia have low development of the financial
system.

13. ASEAN+3 CAPITAL MARKET DEVELOPMENT
Source: ASEAN Capital Market Implementation (2009)

14. Table: Bond Market Capitalization in ASEAN+3 Countries, 1997-2013 (% of GDP)
Japan, South Korea and Malaysia are leading in bond market deepening
INDICATORS
1997
1998
2000
2005
2008
2009
2010
2011
2012
2013
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
Cambodia
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
People's Republic of China
3.51
5.01
7.07
10.71
15.93
19.32
21.46
23.08
12.47
14.95
Indonesia
1.55
1.57
1.34
2.23
1.57
1.50
1.61
1.41
2.27
2.43
Japan
Private Bond Market
Capitalization to GDP (%)
COUNTRIES
Brunei Darussalam
43.25
47.84
48.14
40.98
40.33
39.74
37.34
37.19
18.02
17.32
Republic of Korea
29.66
45.95
50.72
53.04
56.43
65.73
66.83
59.25
75.18
79.38
Lao PDR
NA
NA
NA
NA
NA
NA
NA
NA
NA
42.61
NA
42.55
NA
4.83
Malaysia
35.86
41.23
32.79
47.42
56.49
58.89
58.67
58.09
Myanmar
NA
NA
NA
NA
NA
NA
NA
NA
Philippines
0.19
0.20
0.21
0.71
0.93
0.93
1.03
0.96
NA
4.98
Singapore
9.87
11.52
16.52
17.81
16.60
14.20
11.56
10.01
31.57
32.41
Thailand
7.32
8.38
11.46
0.00
10.43
0
11.91
0.49
13.31
0.8
13.25
1.63
12.73
2.27
15.48
0.76
16.17
0.4
Vietnam
Brunei Darussalam
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
Cambodia
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
People's Republic of China
4.22
5.39
8.14
23.73
30.39
29.35
26.36
22.44
33.25
32.46
11.44
Indonesia
2.24
28.53
16.91
13.57
13.58
13.52
10.79
Japan
51.59
63.14
79.16
145.53
178.97
195.56
200.08
218.85
194.54
200.4
Republic of Korea
8.56
14.15
20.73
44.23
39.66
43.05
46.97
44.81
47.86
49.47
Lao PDR
NA
NA
NA
NA
NA
NA
NA
NA
Malaysia
23.21
25.47
28.23
36.65
42.17
48.66
53.33
54.02
NA
63.61
NA
60.64
Myanmar
0.42
0.67
3.31
1.23
0.61
1.02
2.77
3.29
Philippines
25.23
22.09
24.59
36.84
30.99
29.82
29.54
29.07
NA
33.49
NA
33.39
Singapore
13.34
15.44
23.90
37.27
43.92
46.93
44.37
45.40
50.03
52.64
Thailand
1.06
5.67
Vietnam
Public Bond Market
Capitalization to GDP (%)
0.70
10.95
NA
NA
13.66
0.28
28.13
5.01
37.69
13.51
42.42
15.1
48.14
12.21
49.78
13.5
59.43
16.98
59.15
16.49
Source: Asian Bond Online, CEIC (2013)

15. FINAL REPORT: SWOT ANALYSIS ON THE CAPITAL MARKET INFRASTRUCTURE IN THE ASEAN+3 COUNTRIES AND ITS POLICY IMPLICATIONS
FINAL REPORT: SWOT ANALYSIS ON THE CAPITAL MARKET INFRASTRUCTURE IN THE ASEAN+3 COUNTRIES AND ITS POLICY IMPLICATIONS
ASEAN+3
CAPITAL MARKET INFRASTRUCTURE
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16. BRUNEI DARUSSALAM
 In order to manage its capital market, Brunei Darussalam Capital Markets:
(1) Securities Order of 2001 which had been amended in 2002 and 2005; and
(2) Mutual Funds Order of 2001.
Both of them have been replaced with the Securities Market Order of 2013.
 There is currently no stock exchange and self-regulatory organization in Brunei Darussalam.
The capital markets of Brunei Darussalam are currently in the development stage .
 The capital market infrastructure is still being established and there are plans to have
linkages for cross-border cooperation especially with the ASEAN member countries.
 Brunei has investment advisers, investment dealers, investment representatives, fund
operators and banks as part of its capital market infrastructure. At the moment, there is
only one company offering its stock publicly OTC. This is through a licensed dealer, and
trading volume is very low.
 Brunei has capital market intermediaries whose head offices are based in other ASEAN
member countries. The intermediaries outsource some operations to their head offices.

17. CAMBODIA
Table: Financial Supervisory Infrastructure in Cambodia
Source: Naron (2007)

18. INDONESIA
Figure: Financial Supervisory Infrastructure & Capital Market Structure In Indonesia
Source: Aziz (2013)
Source: OJK (2013)
 In the wake of 2008 global financial crisis, the Indonesia financial systems
restructured by establishing the Financial Services Authority. The agency was newly
established replacing the role of BAPEPAM-LK and part of the Central Bank of
Indonesia’s duties. OJK is an autonomous institution which directly reports its duties
to the parliament and is free from interference by other parties, with functions,
duties, and authority to regulate, supervise, examine, and investigate financial
services sector in Indonesia.

19. LAO PDR
Figure: Financial Supervisory Infrastructure in Lao PDR
Source: Asian Development Bank (2012)

20. MALAYSIA
Figure: Financial Supervisory Infrastructure in Malaysia
Source: Yunus (2007)

21. MYANMAR
 Myanmar Capital Market is still in the development stage.
 Myanmar has a plan to open the capital market by 2015. To support the plan, Myanmar,
led by the Minister for the Ministry of Finance and Revenue, organize Capital Market
Development Committee on 1st July, 2008.
 Myanmar also built Road Map for the development of capital market in accordance with
the time frame for the effort to gain ASEAN integrated Capital Market. There are three
phases to be implemented. The first phase has already been implemented from 2008 to
2009. The second phase is being implemented from 2010 to 2012 and the third phase will
be implemented from 2013 to 2015.
 The financial system in Myanmar remains one of the least developed in the world, with
only under 10% of the population holding of a bank account and less than one citizen per
1000 active in the credit market. This lack of financial development happens due to a
combination of high inflation, bank runs and insider lending and low capital bases.
 The new Central Bank of Myanmar (CBM) Law was signed by the president, Thein Sein, on
11 July 2013. The legislation secures the bank’s autonomy and clarifies its responsibilities
to regulate local banks, oversee the development of capital markets and manage the
official foreign exchange reserves. Under this new law, the role of CBM Director will be
upgraded to ministerial level to give more flexibility in conducting their business. Through
this new law its clearly reflected that all kinds of financial activities in Myanmar are solely
supervised by the CBM.

22. PHILIPPINES
 There are three agencies that supervise the different institutions in the Philippine financial
system. In addition to being the monetary authority, the Bangko Sentral ng Pilipinas (BSP)
supervises banks and their financial allied subsidiaries and affiliates (except insurance
companies), non-stock savings and loan associations, and pawnshops.
 The Securities and Exchange Commission (SEC), on the other hand, has oversight on the
domestic capital market and, as such, supervises self-regulatory organizations (SROs), investment
houses, and securities dealers/brokers. It also supervises investment companies, finance
companies and pre-need firms.
 Finally, the Insurance Commission (IC) supervises insurance and reinsurance companies,
insurance brokers, and mutual benefit associations.
 In addition, the Philippine Deposit Insurance Corporation (PDIC) also shares some supervisory
powers with BSP over banks consistent with its role as deposit insurer.
 Regarding inter-institutions coordination for maintaining financial stability, in July 2004, the
three financial supervisory agencies, together with the PDIC, formed the Financial Sector Forum
(FSF). The FSF is essentially a cooperative effort without any specific legal authority, and thus it is
not intended to function as an integrated supervisory body.
 The key objectives for setting up the FSF include the improvement of the supervision of financial
conglomerates and addressing the occurrence of firms operating in “regulatory grey areas”.

23. SINGAPORE
 Singapore has an integrated financial regulatory structure, under which the Monetary
Authority of Singapore (MAS) has the authority to regulate the banking, securities, futures,
and insurance industries in the nation-state.
Figure: Financial Supervisory Infrastructure in Singapore
Source: The Group of Thirty (2007)

24. THAILAND
Figure: Financial Supervisory Infrastructure in Thailand (Part 1)
Source: Thailand Ministry of Finance

25. THAILAND
Figure: Financial Supervisory Infrastructure in Thailand (Part 2)
Source: Thailand Ministry of Finance

26. VIETNAM
Figure: Financial Supervisory Infrastructure in Vietnam
Source: Vietnam Bond Market Association

27. PEOPLE’S REPUBLIC OF CHINA
 China adopts a sector-based approach for its financial industry supervision, with securities,
banking and insurances sectors under separated supervision by the China Securities
Regulatory Commission (CSRC), the China Banking Regulatory Commission (CBRC) and the
China Insurance Regulatory Commission (CIRC) respectively, pursuant to applicable laws.
Figure: Financial Supervisory Infrastructure in People’s Republic of China
Source: The Group of Thirty (2007)

28. JAPAN
 The Japanese financial regulatory structure is characterized as an integrated approach led
by the Financial Services Agency (FSA), with the Ministry of Finance and the Bank of Japan
continuing to retain an important role. Although the MOF’s supervisory role is limited as a
result of the establishment of the FSA, it retains a strategic role within the crisis
management council.
Figure: Financial Supervisory Infrastructure in Japan
Source: The Group of Thirty (2007)

29. SOUTH KOREA
 The Financial Supervisory Service (FSS) is South Korea integrated financial regulator that
examines and supervises financial institutions under the broad oversight of the Financial
Service Commission (FSC), the government regulatory authority staffed by civil servants.
Under the guidance from the FSC, the FSS conducts inspections of and supervision over
financial institutions and then it also reports the results back to the FSC
Figure: Financial Supervisory Infrastructure in South Korea
Source: Yung (2007)

30. FINAL REPORT: SWOT ANALYSIS ON THE CAPITAL MARKET INFRASTRUCTURE IN THE ASEAN+3 COUNTRIES AND ITS POLICY IMPLICATIONS
FINAL REPORT: SWOT ANALYSIS ON THE CAPITAL MARKET INFRASTRUCTURE IN THE ASEAN+3 COUNTRIES AND ITS POLICY IMPLICATIONS
ASEAN+3
FINANCIAL MARKET PRODUCTS
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31. ASEAN MEMBER FINANCIAL MARKET PRODUCTS (Part 1)
 BRUNEI DARUSSALAM
The stock and bond markets are small and conducted OTC. In the stock market, there is only
one market player/financial institution offering over-the-counter purchases and selling of
company stocks/shares. In the bond market, Brunei have government and corporate sukuk
issuances. AMBD, on behalf of the government of Brunei Darussalam, is the main issuer for
Brunei Government Short-term Sukuk al-Ijarah.
 CAMBODIA
Two types of securities that are able to be traded on CSX:
Common Stock and Preferred Stock
There are currently no such a modern or institutionalized stock in Cambodia Capital Market
 INDONESIA
Equities (Stock)
Corporate Bonds: Bond issued by National Private Company, including BUMN and BUMD.
Government Bonds: Bonds Issued by the Government including ORI and T-Bill.
Corporate Sukuk: Fixed Income instruments are issued based on Sharia principles.
Corporate Sukuk Revenue based on contract.
State Sharia Securities/SBSN or Corporate Sukuk: Securities issued by the Government based
on Sharia
Asset-Backed Securities (ABS): Debt Securities issued with underlying assets as the basis.
Derivatives issued in Indonesia include stock options and Index Future Contracts.

32. ASEAN MEMBER FINANCIAL MARKET PRODUCTS (Part 2)
 LAO PDR
There are two products offered in Laos’s capital market, which are stock and bonds. And there
are only two listed stocks in the market listed in LSX which are EDL Generation Public
Company (EDL-Gen), and Banque Pour Le Commerce Exterieur Lao Public (BCEL).
On bonds, Laos issues three year Kip-denominated bonds and Baht-denominated bonds.
The Government issues Treasury-bills on a regular basis to finance the country’s budget deficit.
 MALAYSIA
Malaysia financial market products comprise of: common stock, preferred stock, warrant,
mutual fund, and bonds.
Other financial market product outside capital market product is Negotiable Instrument of
Deposit (NID). NID is an instrument issued by a banking institution certifying that a certain
sum in MYR or Foreign Currency has been deposited with the issuing bank for a certain
tenor at a specified rate of interest (coupon rate may be fixed, floating or zero).
While Short Term Corporate Placement (STCP) provides an alternative investment avenue for
customers to place their excess funds with HLBB at a more flexible tenure as compared to
fixed deposit
 PHILIPPINES
Philippines’s instruments that traded in capital market are:
Fixed Income Securities (Bonds, Mortgage Backed Securities, Asset Backed Securities) and
Variable Income Securities (Derivatives, Equities, FX Denominates)

33. ASEAN MEMBER FINANCIAL MARKET PRODUCTS (Part 3)
 SINGAPORE
Bond offerings with a lower minimum subscription size and tradable on the Singapore Stock
Exchange (SGX) are also available for the retail market.
Singapore Exchange (SGX) is the preferred listing location of close to 800 companies. One of the
unique strengths of our equity capital markets is the large range of foreign listings on SGX.
Singapore houses the major global FX dealers and offers a deep and liquid market for trading
and hedging of G3 currencies, as well as emerging market currencies. At derivative market,
the products can be split into two: that for exchange-traded derivatives and that for overthe-counter derivatives.
 THAILAND
There are 4 types of products in foreign exchange market, but the most popular in Thailand is
foreign exchange swap since it has relation with other short-term instruments.
The Thailand structured of bonds can be categorized into two groups: structured notes and
securitization bonds. Most of the structured notes in Thailand are issued by commercial
banks and are mainly Equity-Linked Notes (ELN).
Other financial markets include: Repo transaction, Treasury Bills, Private Repurchase
Operations, Bilateral Repurchase Operations, and Futures.
 VIETNAM
Similar to other countries, the main capital market product from Vietnam stock exchange
comes from stocks and bonds of companies being traded in the market.
In Vietnam, the most derivatives such as options and future contracts are hold on off-exchange
trading.

34. ASEAN+3 (APT) FINANCIAL MARKET PRODUCTS
 JAPAN
Japanese Bonds are classified into the following categories:
Japanese government bonds: JGB;
Local government bonds (prefectures, municipalities (cities, towns and villages)
Government agency bonds
Local public corporation bonds
Local governments agency bond
Corporate bonds
Bank debentures, and
Non-resident bonds (foreign bonds)
Other financial products includes: Call money market, Repo market, Commercial Money
Market and Derivative Market.
 SOUTH KOREA
Bonds in Korea Republic could be classified into two kinds, they are: government bond and
corporate bond.
While derivatives products in South Korea include: Stock Index Products: KOSPI 200 Futures,
KOSPI 200 Options, STAR Futures.
Individual Equity Products: Individual Equity Futures, Individual Equity Options, Interest Rate
Products: 3 Year Korea Treasury Bond Futures (KTB3), 5 Year Korea Treasury Bond
Futures(KTB5), 10 Year Korea Treasury Bond Futures(KTB10), MSB Futures.
Currency Products: USD Futures, USD Options, Japanese Yen Futures, Euro Futures.
Commodity Products: Gold Futures, Lean Hog Futures

35. FINAL REPORT: SWOT ANALYSIS ON THE CAPITAL MARKET INFRASTRUCTURE IN THE ASEAN+3 COUNTRIES AND ITS POLICY IMPLICATIONS
FINAL REPORT: SWOT ANALYSIS ON THE CAPITAL MARKET INFRASTRUCTURE IN THE ASEAN+3 COUNTRIES AND ITS POLICY IMPLICATIONS
ASEAN+3
SWOT ANALYSIS ON CAPITAL
MARKET
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36. STRENGTH (S) ANALYSIS
STRENGTH:
•There are great efforts and awareness by all member
countries to develop their capital markets;
•There have been strong willingness by member countries to
embark on capital market cooperation for the last decade.
•Mobility of funds and professionals have been extensive for
the last decade;
•ASEAN countries’ economic growth has been robust and
sturdy in the wake of the Asian crisis of 1998.

37. WEAKNESSES (W) ANALYSIS
WEAKNESSES:
•There are sheer differences among countries in the ASEAN+3
region pertaining to political system, economic development, and
sosio-cultural ambience;
•There are, unfortunately, still inequalities among countries in the
ASEAN+3 region with regard to capital market development,
readiness of infrastructure, and the quality of human capital if the
capital markets are to be harmonized and integrated;
•Current circumstances indicate that member countries have
enacted and administered so much diverse regulations and
regulators. Moreover, law enforcement is of various degrees in
the ASEAN+3 region;
•Traditionally, risk appetite of the region’s society is relatively
low;
•Citizens are more inclined to save in the banking system rather
than invest in capital market products.

38. OPPORTUNITIES (O) ANALYSIS
OPPORTUNITIES:
•The realization of the ASEAN Economic Community (AEC) in 2015
will manifest in a huge ASEAN market. This would be enormous
opportunities for capital market participants with respect to portfolio
diversification, market expansion, and capital movement;
•Economists and business community deem the 21st century as the
Asian awakening era, indicating that the shift in capital flows will be
(and actually have been) magnificent to the Asian region;
•Continuing the second opportunity argument above, potential
capital sources from outside the ASEAN+3 region are very lucrative
and readily available, especially in the wake of the European market
debacle.

39. THREATS (T) ANALYSIS
THREATS:
•There have been historically volatilities in financial markets in the
ASEAN+3 region, which might endanger the stability and sustainability of
the region’s financial systems;
•The fear for contagion effect from other regions that are experiencing
financial crisis is always prevalent;
•Tapering by the U.S. Federal Reserve has reduced capital inflows into the
ASEAN markets;
•The risk of financial instability and crisis is still intact due to the still-to-beenhanced political and economic foundations of the ASEAN+3 countries;
•The fledgling ASEAN+3 integrated capital markets will be competing with
other economic communities and integrated capital markets. For instance,
competitive pressure will come from the NYSE-Euronext in relation to
capital attractiveness.

40. FINAL REPORT: SWOT ANALYSIS ON THE CAPITAL MARKET INFRASTRUCTURE IN THE ASEAN+3 COUNTRIES AND ITS POLICY IMPLICATIONS
FINAL REPORT: SWOT ANALYSIS ON THE CAPITAL MARKET INFRASTRUCTURE IN THE ASEAN+3 COUNTRIES AND ITS POLICY IMPLICATIONS
ASEAN+3
FINAL REPORT CONCLUSION
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PENELITIAN DAN PELATIHAN EKONOMIKA DAN BISNIS (P2EB)| FEB UGM

41. REPORT CONCLUSION (Part 1)
All countries in the ASEAN+3 regions have made effort to
develop their capital markets to be ready for the capital market
integration.
The robust effort includes the development of infrastructure,
regulations, investor protection, and information and disclosure
requirements.
Nevertheless, some countries such as Cambodia, Myanmar,
Lao, and Vietnam that are the least developed capital markets
seem less ready for market integration.
As a consequence, they need support, not only from countries
cooperating with them, but also from market participants in their
own countries.
For instance, the few number of firms listed in Cambodia are still
a hindrance to the countries’ capital market development.

42. REPORT CONCLUSION (Part 2)
The integration among the ASEAN+3 countries is still very
possible but requires additional work and effort.
In short and medium terms, the region has to address the
issues of sufficient capital market infrastructure,
comparable capital market products, and high calibre
capital market professionals in the region.
In the long run, if the equal and leading development of
infrastructure has been attained, capital market integration
in the region is on the way to be capitalized on.

43. FINAL REPORT: SWOT ANALYSIS ON THE CAPITAL MARKET INFRASTRUCTURE IN THE ASEAN+3 COUNTRIES AND ITS POLICY IMPLICATIONS
FINAL REPORT: SWOT ANALYSIS ON THE CAPITAL MARKET INFRASTRUCTURE IN THE ASEAN+3 COUNTRIES AND ITS POLICY IMPLICATIONS
THANK YOU!
FINAL REPORT: SWOT ANALYSIS ON THE
CAPITAL MARKET INFRASTRUCTURE IN THE
ASEAN+3 COUNTRIES AND ITS POLICY
IMPLICATIONS
PENELITIAN DAN PELATIHAN EKONOMIKA DAN BISNIS (P2EB)| FEB UGM
PENELITIAN DAN PELATIHAN EKONOMIKA DAN BISNIS (P2EB)| FEB UGM

44. FINAL REPORT: SWOT ANALYSIS ON THE CAPITAL MARKET INFRASTRUCTURE IN THE ASEAN+3 COUNTRIES AND ITS POLICY IMPLICATIONS
FINAL REPORT: SWOT ANALYSIS ON THE CAPITAL MARKET INFRASTRUCTURE IN THE ASEAN+3 COUNTRIES AND ITS POLICY IMPLICATIONS
APPENDIX
ASEAN+3 COMPREHENSIVE
SWOT ANALYSIS
PENELITIAN DAN PELATIHAN EKONOMIKA DAN BISNIS (P2EB)| FEB UGM
PENELITIAN DAN PELATIHAN EKONOMIKA DAN BISNIS (P2EB)| FEB UGM

45. BRUNEI DARUSSALAM
Figure: Brunei Darussalam Capital Market SWOT

46. CAMBODIA
Figure: Cambodia Capital Market SWOT

47. INDONESIA
Figure: Indonesia Capital Market SWOT

48. LAO PDR
Figure: Lao PDR Capital Market SWOT

49. MALAYSIA
Figure: Malaysia Capital Market SWOT

50. MYANMAR
Figure: Myanmar Capital Market SWOT

51. PHILIPPINES
Figure: Philippines Capital Market SWOT

52. SINGAPORE
Figure: Singapore Capital Market SWOT

53. THAILAND
Figure: Thailand Capital Market SWOT

54. VIETNAM
Figure: Vietnam Capital Market SWOT

55. JAPAN
Figure: Japan Capital Market SWOT

56. PEOPLE’S REPUBLIC OF CHINA
Figure: People’s Republic of China Capital Market SWOT

57. SOUTH KOREA
Figure: South Korea Capital Market SWOT