ASEAN Regional Financial Integration

What is happening and how is SWIFT supporting it?

What is next?

How is SWIFT supporting financial integration?

What trends are we seeing?

ASEAN Regional Financial Integration Session

Introduction

Where are we today?

3

Introduction: ASEAN Regional Financial Integration

ASEANAEC

ASEAN

Financial Integration

ASEAN payments

and settlement

system

(WCPSS)

What is happeningand how is SWIFT supporting it?

ASEAN..

ASEAN a Region with a lot of Potential

….

GDP USD 2.3 trillion

GDP Growth Projections remain around 5%

Population >600 million (approx. 9% global population)

Trading partners

China, Japan, EU, US, Korea, India, Australia

Market capitalisation

5.8% average growth rate for the region

Rank Country

Total Traffic Payments Securities

May 14 YTD Avg Daily

Traffic

Weight in ASEAN

Growth vs May 13

May 14 YTD Avg Daily

TrafficRank

Growth vs May 13

May 14 YTD Avg Daily

TrafficRank

Growth vs May 13

1 Singapore 296,204 49% 12% 155,581 1 11% 114,246 1 16%

2 Thailand 87,183 14% 9% 58,286 2 13% 24,162 4 1%

3 Indonesia 83,853 14% 13% 39,308 3 6% 39,927 3 24%

4 Malaysia 75,879 13% 7% 30,347 4 8% 40,683 2 7%

5 Philippines 40,923 7% 9% 22,203 5 6% 15,450 5 17%

6 Vietnam 17,382 3% 13% 11,967 6 12% 1,416 6 21%

7 Cambodia 1,272 0% 12% 1,141 7 14% 2 7 21%

8 Brunei Darussalam 1,024 0% 1% 943 8 2% 1 8 12%

9 Myanmar 600 0% 12% 459 9 33% 0 9 -

10 Laos 483 0% 8% 395 10 15% - 10 -

FIN traffic in ASEAN49% of ASEAN traffic is sent from Singapore

The Goal of Regional Economic Integration is AEC..

• Single market and production base• Highly competitive economic region• Region of equitable economic development• Fully integrated into the global economy

Transform ASEAN into a region with free movement of

goods, services, investment, skilled labour and freer flow of capital

ASEAN EconomicCommunity Blueprint by 2015

Characteristics:

AEC 2015: Financial Integration Blueprint

Goal of the Blueprint

The achievement of a well-integrated and smoothly functioning regional

financial system, characterized by more liberalized

capital account regimes and inter-linked capital markets

ASEAN Payment and Settlement System

An efficient payment system

is vital in strengthening the

link among ASEAN members

Source: The Road to ASEAN Financial Integration by ADB and ASEAN

Areas for enhancement, development and harmonization

i. Cross-border trade settlementii. Cross-border money remittanceiii. Cross border retail payment

systemsiv. Cross border capital market

settlementv. Standardization

Agenda

What Trends Are We Seeing?

Qinwen Xiao

Agenda

Moving Towards International Standards

Kiyono Hasaka

Agenda

SWIFT’s Support for Financial Integration & what is next?

Usama Delorenzo