Introduction

The Second ASEAN Informal Summit, held in Kuala Lumpur on 15 December 1997, adopted the ASEAN Vision 2020 which sets out a broad vision for ASEAN in the year 2020: an ASEAN as a concert of Southeast Asian Nations, outward looking, living in peace, stability and prosperity, bonded together in partnership in dynamic development and in a community of caring societies.

In order to implement the long-term vision, action plans are being drawn up to realise this Vision. The Hanoi Plan of Action (HPA) is the first in a series of plans of action building up to the realisation of the goals of the Vision.

The HPA has a six-year timeframe covering the period from 1999 to 2004. The progress of its implementation shall be reviewed every three years to coincide with the ASEAN Summit Meetings.

In recognition of the need to address the current economic situation in the region, ASEAN shall implement initiatives to hasten economic recovery and address the social impact of the global economic and financial crisis. These measures reaffirm ASEAN commitments to closer regional integration and are directed at consolidating and strengthening the economic fundamentals of the Member Countries.

STRENGTHEN MACROECONOMIC AND FINANCIAL COOPERATION

To restore confidence, regenerate economic growth and promote regional financial stability through maintaining sound macroeconomic and financial policies as well as strengthening financial system and capital markets enhanced by closer consultations, so as to avoid future disturbances.

1.1 Maintain regional macroeconomic and financial stability.

1. 1.1.1 Strengthen the ASEAN Surveillance Process; and

2. 1.1.2 Structure orderly capital account liberalisation.

1.2 Strengthen financial systems.

1. 1.2.1 Adopt and implement sound international financial practices and standards, where appropriate by 2003;

2. 1.2.2 Coordinate supervision and efforts to strengthen financial systems;

3. 1.2.3 Develop deep and liquid financial markets to enable governments and private firms to raise long-term financing in local currency, thereby reducing the over dependence on bank finance and limiting the risks of financial crisis;

4. 1.2.4 Adopt and implement existing standards of disclosure and dissemination of economic and financial information; and

5. 1.2.5 Adopt prudential measures to mitigate the effects of sudden shifts in short-term capital flows.

1.3 Promote liberalisation of the financial services sector.

1. 1.3.1 Intensify deregulation of the financial services sector; and

2. 1.3.2 Intensify negotiations of financial sector liberalisation under the ASEAN Framework Agreement on Services (AFAS).