Promoting regional connectivity - International | Securities Commission Malaysia

Promoting regional connectivity

1. ASEAN Capital Markets Forum (ACMF)

The ASEAN Capital Markets Forum (ACMF) is a high-level grouping of capital market regulators from all 10 ASEAN jurisdictions, namely Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam.

Established in 2004 under the auspices of the ASEAN Finance Ministers, the primary responsibility of the ACMF is to develop a deep, liquid and integrated regional capital market. Since 2019, the ACMF chairmanship rotates annually consistent with the member state chairing ASEAN for that year. The SC has chaired the ACMF between 2004-2008, 2014-2018 and will chair it again in 2025, concurrent with Malaysia’s chairmanship of ASEAN.

The SC plays a pivotal role in contributing to the development and harmonisation of ASEAN not only as a member of the ACMF but also as Co-Chair of the ACMF’s Sustainable Finance Working Group (SFWG). Through the SFWG, the SC contributed to the publication of the ASEAN Green, Social, and Sustainability-Linked Bond Standards, the ASEAN Sustainable and Responsible Fund Standards, and the ASEAN Transition Finance Guidance. The SC actively participates in other ACMF Working Groups dealing with corporate governance, collective investment schemes, disclosures and market development programmes, among others.

2. ASEAN Working Committee on Capital Market Development (WC-CMD)

The WC-CMD serves as the coordinating committee which monitors initiatives and progress of ASEAN members towards building the capacity and laying the infrastructure for development of ASEAN capital markets, with a long-term goal of achieving cross-border collaboration among the various capital markets in ASEAN.

Members of WC-CMD comprise representatives from the Finance Ministries, Securities and Exchange Commissions and Central Banks. The leadership of WC-CMD is appointed on a co-chairing basis for a term of two years, rotated among the 10 ASEAN member stated split into two groups. SC last co-chaired the WC-CMD between 2018-2020.

At the WC-CMD, the SC chairs the Infrastructure Finance Working Group (IFWG) which supports the development of infrastructure financing throughout ASEAN. This includes sharing experiences by sovereign issuers at a Sustainable Bond Knowledge Sharing session organised by the IFWG, which takes place at each WC-CMD meeting to promote the use of sustainable finance by governments to fund sustainable projects.

3. ASEAN Taxonomy Board (ATB)

The ASEAN Taxonomy Board (ATB) was set up under the auspices of the ASEAN Finance Ministers and Central Bank Governors’ meeting (AFMGM). It is a collaborative initiative of the four ASEAN sectoral bodies in the financial integration process, namely the ASEAN Capital Markets Forum (ACMF), the ASEAN Insurance Regulators Meeting (AIRM), the ASEAN Senior Level Committee on Financial Integration (SLC), and the ASEAN Working Committee on Capital Market Development (WC-CMD).

The ATB develops, maintains and promotes a multi-tiered ASEAN Taxonomy for Sustainable Finance (ASEAN Taxonomy) that identifies economic activities that are sustainable and help direct investment and funding towards a sustainable ASEAN.

The SC is a member of the ATB is actively involved in the development of the ASEAN Taxonomy and has participated in the delivery of Version 1, 2 and 3 of the Taxonomy to date.

Moreover, the SC currently chairs the ATB’s Working Group on Market Facing and Resourcing and led stakeholder consultations and engagements on Versions 1 and 2 of the ASEAN Taxonomy. As chair of this Working Group, the SC will continue to lead stakeholder engagements and targeted consultations for subsequent versions of the Taxonomy.