Volatile asset price leads to an unstable financial system, and is thus an obstacle to sustainable economic growth. What is important in the region is to enhance the market capacity for receiving capital flows, or in other words, to dramatically improve the situation of being “a big fish in a small pond”.
Regional financial cooperation and collaboration It is essential for each jurisdiction to harmonize its market regulations and practices with the global standards in promoting cross-border transactions. However, unilateral effort by a single jurisdiction has its limitations. Collective effort is also needed to build the investment foundations by actively utilizing regional forums, such as ASEAN+3 and EMEAP, to create a regional investment class.