One ASEAN bond market still far fetched

CEBU, Philippines - Although there is an active move pushing for a one ASEAN bond market, it would be a tough way ahead because of too diverse cultural and regulation set up.

Bankers Association of the Philippines past president Alberto S. Villarosa said that although there is a wider market scope and awash liquidity waiting to be tapped in the ASEAN, integration of the bond market would take a longer time than expected.

"Even the Euro zone took a long time to be integrated," said Villarosa explaining further that the proposed ASEAN bond market is difficult because of different taxation regulation in each country, coupled with disparate cultures.

Under the ASEAN Economic Community blueprint, ASEAN seeks to achieve a well-integrated and smoothly functioning regional financial system, characterized by more liberalized capital account regimes and inter-united markets.

In 2011, the ASEAN Central Bank Governors adopted the ASEAN Financial Integration Framework to provide a general approach to the liberalization and integration initiatives under the AEC. The AFIF aims to have a semi-integrated financial market by 2020.

Villarosa said the Philippines is actively participating in the ASEAN Bond Forum, but stressed that "It’s not going to be that easy in general."

Likewise, ASEAN also focuses on developing the region's capital market by building capacity and laying the long-term infrastructure to achieve integration of capital markets in the ASEAN bloc.

This will be implemented through harmonization of domestic laws and regulations in linkage of market infrastructure.

The Securities and Exchange Commission represents the Philippines in regional forums concerning capital market development and integration. (FREEMAN)