The Future of ASEAN Co-operation in Banking, Finance and Insurance

Abstract

In examining the economic development plans for the ASEAN region, the capital investment required provides a strong argument for giving regional banking and financial co-operation high priority. For example, a study using 1974–5 statistics concluded that ‘the resource position of various banking systems indicates that there are deficit and surplus areas within ASEAN. Obviously this would suggest that ASEAN countries need to consider ways and means of mobilising resources from surplus countries to deficit countries.’ ¹ These conclusions are just as valid in 1983. Similarly, besides the transfer of capital, regional co-operation within the ASEAN banking, finance and insurance industries will also improve the development process. As Singapore’s former Minister of Finance, Hon Sui Sen, explained, ‘A pooling together of banking skills, an exchange of expertise, closer ties and greater integration and co-operation of the ASEAN banking communities will increase ASEAN efficiency in harnessing resources and channelling them in areas of need’.²