A further pick-up is expected, though there is substantial inertia in aggregate wage outcomes even if there are large wage increases in some pockets. This inertia stems from multi-year enterprise agreements, the review of award wages that takes place on an annual basis and public sector wages policies.
Another concern for ASEAN financial sector is the implementation of Basle Accord II which has raised question of the readiness of the banking system. We should therefore continue strengthening collaboration between central banks, monetary authorities, bankers, and private sector. In this regard, central banks have to provide the infrastructure where financial markets rely on, so that the best practices can be adapted.