ASEAN Exchanges accelerate product, ESG dev’t efforts

Premier vacation destination Boracay Island was the site of the recent 38th ASEAN Exchanges CEOs meeting hosted by the Philippine Stock Exchange on 21 February 2025.

The meeting focused on priority initiatives to promote the region as an asset class, highlighting its unique investment qualities. The meeting also tackled activities related to the creation of a unified ecosystem for sustainability solutions among publicly-listed companies and capital market stakeholders.

Depository Receipts (DRs) are among the investment products seen to generate interest in the ASEAN capital market.

Early adopters of the DR program among the member-bourses, the Singapore Exchange (SGX Group) and The Stock Exchange of Thailand (SET), have listed a combined total of 17 DRs and have more than doubled the asset under management of these DRs last year.

The other ASEAN Exchanges are keen on replicating the success of SGX Group and SET and are now in various stages of regulatory framework development and stakeholder engagement.

Strong industry interest

On the sustainability front, following the November 2024 announcement, the ASEAN-Interconnected Sustainability Ecosystem (ASEAN-ISE) Participating Exchanges issued a Request for Information (RFI) on February 2025, receiving strong industry interest.

A joint briefing on the RFI by the ASEAN Exchanges last week saw participation from more than 120 representatives from 35 organizations including solution providers, credit bureaus, technology firms, information vendors, and consultants.

The RFI seeks market insights to develop a unified ASEAN regional ecosystem which includes a Centralized Sustainability Data Infrastructure and a Digital Marketplace for Technology-based Sustainability Solutions.

‘The initiatives we are pursuing form part of our response to the dynamic changes in the markets and the urgent need to implement sustainable programs and solutions.’

To showcase its product and sustainability programs, the ASEAN Exchanges will continue to beef up the content of its website, which has seen a doubling in visitor activity among institutional investors.

The group plans to host the next ASEAN-themed roadshow in Hong Kong in the second half of the year. This, after the successful roadshows in New York, USA last November 2022 and Melbourne, Australia in March 2024.

Response to dynamic changes in the market

Said PSE president and CEO Ramon S. Monzon, “The initiatives we are pursuing form part of our response to the dynamic changes in the markets and the urgent need to implement sustainable programs and solutions. The early indicators of the DR program between SET and SGX highlight the potential of cross-border products to enhance market liquidity and investor interest in ASEAN. The steady progress of DR development across ASEAN markets underscores our collective effort to create a more integrated and vibrant regional asset class.”

CEOs and heads of delegation of Bursa Malaysia (BM), Indonesia Stock Exchange (IDX), SGX Group, SET, and Vietnam Exchange (VNX) attended the meeting, together with the acting Chairwoman of the Ho Chi Minh Stock Exchange, CEO of the Hanoi Stock Exchange as well as the Vice Chairman and COO of Cambodia Securities Exchange (CSX) and the CEO of Lao Securities Exchange (LSX) as observers.