- Product collaboration on Depository Receipts to be jointly pursued by exchanges
- Clear actions outlined to drive sustainability in the ASEAN region
- Inclusion of The Philippine Stock Exchange in the ASEAN-Interconnected Sustainability Ecosystem (ASEAN-ISE) initiative
Bursa Malaysia Berhad (“Bursa Malaysia”) hosted the 37th ASEAN Exchanges CEOs Meeting on 12 July 2024, bringing together CEOs from the six major exchanges in ASEAN to discuss initiatives aimed at making the region more competitive, particularly by focusing on the sustainability ecosystem and regional market connectivity. The meeting included CEOs/Presidents from Bursa Malaysia, Indonesia Stock Exchange (IDX), The Philippine Stock Exchange (PSE), Singapore Exchange (SGX Group), The Stock Exchange of Thailand (SET), as well as the Deputy CEO of Vietnam Exchange. Apart from top executives from the six exchanges, representatives from Cambodia Securities Exchange and Lao Securities Exchange also attended the meeting as observers. This year’s meeting builds upon the 36th ASEAN Exchanges CEOs Meeting hosted by SET in Chiang Mai last September.
In respect of promoting regional market connectivity, the ASEAN Exchanges agreed to jointly pursue the collaboration to offer Depository Receipts (DRs) in their respective exchanges, expanding access for domestic investors to investment opportunities in neighbouring countries. This follows last year’s DR linkage between SGX Group and SET which has yielded positive results, setting the stage to progress this to an ASEAN-level initiative.
On the sustainability front, the past year saw growing momentum, with increased information sharing among ASEAN exchanges and observers, and the adoption of Common ESG metrics. Peer exchanges have given their respective inputs to an ESG landscape survey to prioritise future ESG initiatives to be undertaken by the exchanges.
The ASEAN Exchanges’ CEOs/Presidents have agreed to pursue four Proof-of-Concepts (POCs) over the next three years. These include:
- Establishing an ASEAN Data Infrastructure: Harmonising data structures and standards to form an aggregated ASEAN view, with the potential to create a unified commercial policy and operating model.
- Capacity Building for Listed Issuers: Creating standardised ASEAN ESG curriculum based on relevant global and local requirements to support listed issuers towards efficient, automated and scalable assurance processes.
- Transition Financing for Corporates’ Suppliers: Incentivising quality reporting across supply chains working with banks to offer financing programmes with preferential rates tied to disclosures and commitment to decarbonise.
- ASEAN ESG Awards: Rewarding listed issuers with exemplary ESG performance opportunities to elevate business profile internationally.
The ASEAN-Interconnected Sustainability Ecosystem (ASEAN-ISE) initiative, which started with a Memorandum of Understanding (MoU) between Bursa Malaysia, IDX, and SET, has since expanded to include SGX Group (February 2024) and most recently PSE (July 2024). This significant development underscores the ASEAN bloc’s commitment in adopting and implementing Common ESG Metrics within their respective ESG data infrastructures, hence significantly improving transparency, comparability, and exemplary ESG practices across the region.
Datuk Muhamad Umar Swift, Chief Executive Officer of Bursa Malaysia, said, “The inclusion of PSE in ASEAN-ISE signifies ASEAN Exchange members' steadfast commitment to sustainable development as a unified market. The agreed-upon Proof of Concepts focuses our collective energy and resources on exploring and deploying workable models in targeted strategic areas. These areas aim to elevate competitiveness by developing common data infrastructure, enhancing capacity building capabilities through economies of scale, and building an inter-connected marketplace to facilitate transition financing and capital deployment into businesses with superior ESG practices. We envisage a three-year glidepath and are open to exploring commercially viable business models or fit-for-purpose partnerships to accelerate this journey.”
Ramon S. Monzon, President and CEO of PSE said, "Sustainability is a collective endeavour and we believe ASEAN-ISE provides us an opportunity to contribute to the development and implementation of ESG initiatives in the region. We are excited to collaborate with our peer exchanges in creating programmes that will elevate the level of sustainability in ASEAN markets."
The ASEAN Exchanges website at www.aseanexchanges.org, which has been refreshed in the recent months, now serves as a gateway for global investors seeking to explore the vast potential of ASEAN economies. The website functions as a comprehensive resource, offering information on ASEAN market insights and major developments.
