Going forward, ASEAN with a sizeable population of 618 million offers vast investment prospects as the economy is expected to grow strongly for the next few years. ASEAN leaders have also embarked on an ambitious vision to create a single “common market”. Realisation of this vision will lead to a freer flow of goods and services, capital investment and skilled labour across the region. Many initiatives and measures have been implemented under the ASEAN Economic Community Blueprint since its launch in 2007 and many more areas of importance are being discussed and negotiated. Like most regional economic community, ASEAN aims to promote greater regional connectivity in which lessons of history in economic development had shown, would expand economic growth potential. Data has also shown that intra-regional trade flows have already grown substantially among ASEAN-10 members countries reflecting the increasing phenomenon of freer trade with its neighbouring countries in recent years. Consequently, the share of intra-regional trade has also increased, from 22.5% in 1999 to 25% in 2011. Against this backdrop, ASEAN financial markets had also grown significantly in tandem. In particular, the ASEAN fixed income markets, are instrumental to support the growth of intraregional trade, financing and investment in infrastructure. ASEAN fixed income markets have expanded by more than six folds since 2000, and now stand impressively at USD1.1 trillion.
But when asked a subtly different question, about the relative importance of job security for employees versus dividends for shareholders, a strikingly different pattern emerges. A majority of Japanese, German and French company executives put employee job security above shareholder dividends. For UK and US companies, a strong majority place the balance the other way around. This suggests a very different set of managerial objectives and incentives across countries. Empirical evidence on the relatively efficacy of these different models does not give a clearcut answer. Prior to the crisis, some papers pointed to broader stakeholder representation boosting market value (Fauver and Fuerst (2006)), others to it reducing value (Gorton and Schmid (2004)). Experience since the crisis might provide clearer clues. For example, banks with shareholder-friendly boards in general fared worse during the crisis (Belratti and Stulz (2009)). The debate here seems set to continue and this is a place where further research would be valuable. BIS central bankers’ speeches  15  Conclusion Challenges to the shareholder-centric company model are rising, both from within and outside the corporate sector. These criticisms have deep micro-economic roots and thick macro-economic branches. Some incremental change is occurring to trim these branches. But it may be time for a more fundamental re-rooting of company law if we are to tackle these problems at source. The stakes – for companies, the economy and wider society – could scarcely be higher.