Progress Report of the Working Committee on
Description: Progress Report of the Working Committee on Capital Account Liberalisation (WC-CAL) 22nd Senior Level Committee 26 October 2021 Executive Summary AEC 2025 1 2 3 4 5 6 7 Priorities RMT SAP KPI Others (if any) Cap Building AEC 2026
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slide1. Progress Report of the Working Committee on Capital Account Liberalisation (WC-CAL) 22nd Senior Level Committee 26 October 2021<br>
slide2. Executive Summary AEC 2025 1 2 3 4 5 6 7<br>
slide3. Priorities RMT SAP KPI Others
(if any) Cap
Building AEC
2026 Substantial liberalisation in AMS’ capital account 1 2 Strengthened policy dialogue and information exchange mechanism on capital flows statistics and capital flow measures among AMS Strategic Action Plan (SAP): End Goals for CAL<br>
slide4. Priorities Priorities RMT SAP KPI Others
(if any) Cap
Building AEC
2026 SWG to report its findings on KPIs and possible benchmarks/standards to the 42nd WC-CAL in 2H2021. 1 2 3 Enhance the CAL Heatmap to incorporate relevant CAL efforts toward sustainable finance and/or green economy, including green bonds. Develop a Policy Note, potentially in consultation with international partners, on ASEAN’s recent experiences in Capital Account Safeguard Measures. 4 ASEC to upload CAL reports/documents for public viewing and populate the CAL database (for WC-CAL members only).<br>
slide5. Revised CAL Heatmap
June 2021 * Updated since previous meeting Increase from 85 to 90 since last submission<br>
slide6. SG – no submission, fully liberalized
MM – copied from previous meeting, received no updates Consolidated CAL Plan (2019-2025)<br>
slide7. Strategic Action Plan (SAP): Key Achievements Priorities RMT SAP KPI Others
(if any) Cap
Building AEC
2026 7 Substantial liberalisation in AMS’ capital account 1 2 Strengthened policy dialogue and information exchange mechanism on capital flows statistics and capital flow measures among AMS Conducted semiannual Policy Dialogue Process on Safeguard Mechanisms for CAL;
Continued monitoring of KPIs and RMTs for CAL;
Finalised a Policy Note on AMS’ recent experiences with Capital Flow Measures, to be shared with the IMF; and Updated the CAL Heatmaps as of June 2021;
Updated Individual CAL Plans as of June 2021<br>
slide8. Priorities RMT SAP KPI Others
(if any) Cap
Building AEC
2026 Key Performance Indicators (KPIs) Key Performance Indicator Status Financial Integration
Share of intra-ASEAN portfolio investment to total portfolio investment in ASEAN
10.86% (2019)
12.95% (June 2020)
Share of Intra-ASEAN FDI
to Total FDI in ASEAN
12.14% (2019)
16.96% (2020)
Financial Stability i. Reserves to Short Term External Debt
ii. External Debt to GDP SWG completed survey on adequacy of current KPIs and possible additional KPIs/indicators
Proposed 4 principles to be used holistically to evaluate additional KPIs
Shortlisted 10 potential KPIs for further study Key highlights:
Completion of data for monitoring financial integration KPIs
Suggestions to monitor financial stability KPIs<br>
slide9. Impact Low Medium High Medium Likelihood
High Low Risk Monitoring Template Heat Map * Updated since previous meeting<br>
slide10. Priorities RMT SAP KPI Others
(if any) Cap
Building AEC
2026 Capacity-Building Courses in BCLMV countries: In-house training in requesting CLMV countries
Capital Flow and Crisis Management, 10 August 2018, Lao PDR
Capital Flow and Crisis Management, 5-6 Nov 2018, Cambodia
Capital Account Liberalization Supervision and Monitoring Framework, 10-11 June 2019, Lao PDR
Financial Sector Development and Safety Nets, 26-27 August 2019, Cambodia AFIF customized courses: SEACEN courses customized for BCLMV
Macroeconomic-Financial Linkages and Diagnostics, 20-23 November 2018, Cambodia
Capital Account Liberalization and Foreign Exchange Management, 28-30 January 2019, Myanmar
Capital Flow Monitoring Mechanism 19-21 November 2019, Cambodia Bilateral learning programs: Intra-ASEAN bilateral study visits and learning programs
Workshop on “Central Bank Policy Mix: Issues, Challenges, and Policies”, 9-13 April 2018, SBV to Indonesia
Study Visit on PSS and Foreign Exchange Management, 10-13 September 2018, CBM to MAS
Study Visit on Exchange Rate Management, 15-16 October 2018, CBM/SBV to BSP Key highlights:
Updates on conducted courses under SCCB
Updates on CAL Experts
WC-CAL Coordination with ADB<br>
slide11. Actions Requested from the SLC Status of the SAP for CAL
Revised CAL Heat Map as of June 2021
Individual CAL Plan (2018-2025) as of June 2021
Key Performance Indicators for CAL
Shortlist of potential additional WC-CAL KPIs
Risk Monitoring Template for CAL
Capacity-Building Initiatives For Notation<br>
slide2. Executive Summary AEC 2025 1 2 3 4 5 6 7<br>
slide3. Priorities RMT SAP KPI Others
(if any) Cap
Building AEC
2026 Substantial liberalisation in AMS’ capital account 1 2 Strengthened policy dialogue and information exchange mechanism on capital flows statistics and capital flow measures among AMS Strategic Action Plan (SAP): End Goals for CAL<br>
slide4. Priorities Priorities RMT SAP KPI Others
(if any) Cap
Building AEC
2026 SWG to report its findings on KPIs and possible benchmarks/standards to the 42nd WC-CAL in 2H2021. 1 2 3 Enhance the CAL Heatmap to incorporate relevant CAL efforts toward sustainable finance and/or green economy, including green bonds. Develop a Policy Note, potentially in consultation with international partners, on ASEAN’s recent experiences in Capital Account Safeguard Measures. 4 ASEC to upload CAL reports/documents for public viewing and populate the CAL database (for WC-CAL members only).<br>
slide5. Revised CAL Heatmap
June 2021 * Updated since previous meeting Increase from 85 to 90 since last submission<br>
slide6. SG – no submission, fully liberalized
MM – copied from previous meeting, received no updates Consolidated CAL Plan (2019-2025)<br>
slide7. Strategic Action Plan (SAP): Key Achievements Priorities RMT SAP KPI Others
(if any) Cap
Building AEC
2026 7 Substantial liberalisation in AMS’ capital account 1 2 Strengthened policy dialogue and information exchange mechanism on capital flows statistics and capital flow measures among AMS Conducted semiannual Policy Dialogue Process on Safeguard Mechanisms for CAL;
Continued monitoring of KPIs and RMTs for CAL;
Finalised a Policy Note on AMS’ recent experiences with Capital Flow Measures, to be shared with the IMF; and Updated the CAL Heatmaps as of June 2021;
Updated Individual CAL Plans as of June 2021<br>
slide8. Priorities RMT SAP KPI Others
(if any) Cap
Building AEC
2026 Key Performance Indicators (KPIs) Key Performance Indicator Status Financial Integration
Share of intra-ASEAN portfolio investment to total portfolio investment in ASEAN
10.86% (2019)
12.95% (June 2020)
Share of Intra-ASEAN FDI
to Total FDI in ASEAN
12.14% (2019)
16.96% (2020)
Financial Stability i. Reserves to Short Term External Debt
ii. External Debt to GDP SWG completed survey on adequacy of current KPIs and possible additional KPIs/indicators
Proposed 4 principles to be used holistically to evaluate additional KPIs
Shortlisted 10 potential KPIs for further study Key highlights:
Completion of data for monitoring financial integration KPIs
Suggestions to monitor financial stability KPIs<br>
slide9. Impact Low Medium High Medium Likelihood
High Low Risk Monitoring Template Heat Map * Updated since previous meeting<br>
slide10. Priorities RMT SAP KPI Others
(if any) Cap
Building AEC
2026 Capacity-Building Courses in BCLMV countries: In-house training in requesting CLMV countries
Capital Flow and Crisis Management, 10 August 2018, Lao PDR
Capital Flow and Crisis Management, 5-6 Nov 2018, Cambodia
Capital Account Liberalization Supervision and Monitoring Framework, 10-11 June 2019, Lao PDR
Financial Sector Development and Safety Nets, 26-27 August 2019, Cambodia AFIF customized courses: SEACEN courses customized for BCLMV
Macroeconomic-Financial Linkages and Diagnostics, 20-23 November 2018, Cambodia
Capital Account Liberalization and Foreign Exchange Management, 28-30 January 2019, Myanmar
Capital Flow Monitoring Mechanism 19-21 November 2019, Cambodia Bilateral learning programs: Intra-ASEAN bilateral study visits and learning programs
Workshop on “Central Bank Policy Mix: Issues, Challenges, and Policies”, 9-13 April 2018, SBV to Indonesia
Study Visit on PSS and Foreign Exchange Management, 10-13 September 2018, CBM to MAS
Study Visit on Exchange Rate Management, 15-16 October 2018, CBM/SBV to BSP Key highlights:
Updates on conducted courses under SCCB
Updates on CAL Experts
WC-CAL Coordination with ADB<br>
slide11. Actions Requested from the SLC Status of the SAP for CAL
Revised CAL Heat Map as of June 2021
Individual CAL Plan (2018-2025) as of June 2021
Key Performance Indicators for CAL
Shortlist of potential additional WC-CAL KPIs
Risk Monitoring Template for CAL
Capacity-Building Initiatives For Notation<br>