ASEAN FINANCIAL INTEGRATION Rosalia V. De Leon Treasurer of the Philippines

CEBU: ANCIENT CENTER FOR TRADE SIBU (Cebu): “place for trading” A hub for mercantile activity, both in ancient and modern times Cebu was connected to the rest of the world by virtue of the sea One of Ferdinand Magellan’s first landing points

NEW SEAS (C’s) THAT CONNECT US COOPERATION COMMUNITY CAMARADERIE

CEBU ACTION PLAN Approved during 22nd Asia-Pacific Economic Cooperation (APEC) Finance Ministers’ Meeting Key action programs Financial integration Fiscal reform and transparency Financial resiliency Accelerating infrastructure development

ASEAN INTEGRATION 600 million residents (8% of total population) $2.4 trillion total GDP (7th largest globally) Third largest labor pool Fourth largest exporting pool 100 million tourists annually 5.3% annual GDP growth

ASEAN INTEGRATION: WHAT IS IT?

ASEAN INTEGRATION: WHY? Better competitiveness of financial sector Higher capitalization of local industry players Improvement in domestic infrastructure Lower cost of financial intermediation Additional line of financing for infrastructure projects Higher trade flows through customs reform

ASEAN INTEGRATION: HOW AND WHEN? ASEAN ECONOMIC COMMUNITY BLUEPRINT 2025 Strengthening of financial integration Promoting financial inclusion Ensuring financial stability

ASEAN INTEGRATION: WHAT DOES IT MEAN FOR YOU? Financial services liberalization Capital account liberalization Capital market development Harmonized payments and settlement system Financial inclusion Capacity-building

ASEAN INTEGRATION: WHAT DOES IT MEAN FOR YOU? $120 billion in FDIs annually, more with integration

ASEAN INTEGRATION: WHAT DOES IT MEAN FOR YOU? Improved accessibility to and for ASEAN banks

ASEAN INTEGRATION: WHAT DOES IT MEAN FOR YOU? Improved accessibility to and for ASEAN banks

ASEAN INTEGRATION: WHAT DOES IT MEAN FOR YOU? Greater access to ASEAN bond and equity markets

ASEAN INTEGRATION: WHAT DOES IT MEAN FOR YOU? Financial services liberalization Capital account liberalization Capital market development Harmonized payments and settlement system Financial inclusion Capacity-building

ASEAN INTEGRATION: WHAT DOES IT MEAN FOR YOU? Better quality and accessibility of financial services Policies and reforms consistent with ASEAN financial integration agenda (e.g. National Retail Payment System, Foreign Investment Negative List, Capital Income Tax Reform, Capital Market Development Initiatives) Transfer of knowledge, ideas, best practices

“The world’s changed boys; it’s time we change too.” —Vulture FINAL WORD “The world’s changed boys; it’s time we change too.” —Vulture