Top Story: Bourses on road to pan-Asean exchange
Asean's capital market regulators recently agreed on a "road map" for integration of the region's capital markets by 2015. This would ultimately allow for the creation of Asean "as an investable asset class", according to SGX. Ito Warsito, chief executive of the IDX, and his counterparts say the creation of Asean Exchanges will itself force Asean regulators to address harmonization more urgently than if the exchanges had waited to build their regional market infrastructure. Magnus Böcker, chief executive of SGX said, "that's the fastest way to change the rules."
Highlights of MAS Consultation Papers:
- Paper on Draft Corporate Governance Regulations and Guidelines for Insurers | Closing: Feb 4
- Paper on Related Party Transaction Requirements for Banks | Closing: Jan 25
- Paper on Amendments to the Securities and Futures (Offers of Investments) (Collective Investment Schemes) Regulations 2005 and Proposed Regulatory Treatment of Closed-End Funds | Closing: Jan 24
- Paper on Proposed Changes to Credit Cards and Unsecured Credit Rules | Closing: Jan 21
- Paper on Proposed Amendments to the MAS Act December 2012 | Closing: Jan 12
Foreign investors: Saviors of Vietnamese banks, ETF? | Insider Monkey, Jan 8
Vietnam's banking sector, the Southeast Asian nation's most controversial industry group and one of the largest sector components in the Market Vectors Vietnam (NYSEARCA:VNM), is the primary reason Market Vectors Vietnam (NYSEARCA:VNM) and investor confidence in the country sank during the second and third quarters of 2012. Amid soaring bad debt levels and a government crackdown on corruption that resulted in the arrests of multiple Vietnamese banking luminaries, foreign investors had little reason to embrace Vietnam bank stocks. Market Vectors Vietnam (NYSEARCA:VNM) suffered as a result, plunging from near $21 in May 2012 to around $15 in November.
PM Najib launches new exchange traded bonds | Zawya, Jan 8
Prime Minister Dato' Sri Mohd Najib Tun Abdul Razak today marked a historic milestone for the Malaysian capital market with the launch of the Exchange Traded Bonds and Sukuk (ETBS) on Bursa Malaysia Berhad (Bursa Malaysia) with the maiden issuance by DanaInfra Nasional Berhad (DanaInfra), effectively creating a new asset class on the Exchange to cement Malaysia as the world's leading sukuk marketplace.
Capital market laws amended to drive innovation and promote market efficiency | SC, Jan 2
Securities Commission Malaysia (SC) today announced the coming into force of the Capital Markets and Services (Amendment) Act 2012 (CMSA 2012), together with the issuance of several guidelines, which aim to encourage market and product innovation, promote market efficiency, and allow more informed investment decisions. CMSA 2012 introduces a new approval framework that will facilitate the offering of a broader array of capital market products, which will effectively benefit issuers, intermediaries and investors.
Market Regulation
BSP puts cap on risky currency deals | GMA News, Dec 26
To temper risky "speculative" inflows pouring into the country - a major cause of a strong peso - the Bangko Sentral ng Pilipinas on Wednesday said it imposed limits on bank access to currency contracts. In a briefing, Bangko Sentral Governor Amando Tetangco, Jr. told reporters "a total market cap that will be internal to the BSP and reflects its current level in the market will be introduced" on transactions involving non-deliverable forwards (NDF).
Vietnam-Canada sign MoU on financial supervision SBV, Dec 12
Governor Nguyen Van Binh of the State Bank of Vietnam (SBV) and Mrs. Deborah Chatsis, Ambassador Extraordinary and Plenipotentiary of Canada to Vietnam, signed in Hanoi on December 11, 2012 the Memorandum of Understanding (MOU) on the financial supervision capacity enhancing Project supported via the Canadian International Development Agency (CIDA). The signing ceremony was attended by representatives of the Government Office, the Ministry of Planning and Investment, the Ministry of Finance, the Ministry for Foreign Affairs and leaders of SBV departments.
SGX takes steps to meet global clearing standards | Reuters, Jan 8
Singapore Exchange Ltd said on Tuesday that it has tightened its risk management systems so it is in line to meet new global regulatory standards and make it easier for U.S. and European banks to continue to be members of its clearing houses.The exchange said that it has deployed more capital to support its two clearing houses and made its risk management systems more transparent.
New Bursa system to monitor markets | The Star, Jan 4
Bursa Malaysia Bhd has replaced its existing market surveillance systems for its equity and derivatives markets with the Millennium Surveillance System. The new system, developed by MilleniumIT, is a unified "cross market" surveillance platform for both the equity and derivatives markets, it said in a statement yesterday. The implemented new market surveillance system (MSS) is in furtherance to the exchange's commitment to investor protection and to ensure a fair and orderly market, Bursa said, adding that it was also in line with the stock exchange's broader effort to create a more facilitative trading environment for investors.
Banking
BOT: Banks should cut inter-region fees | The Nation, Jan 7
Banks are facing a new challenge to their non-interest income - as the Bank of Thailand wants them to cancel inter-region transfer fees. "I see no reason for commercial banks to charge the fee because a money transfer with the same bank might not incur extra costs," deputy governor Krirk Vanikkul said last week. "The central bank considers the services involved with transactions, including those at counters, should be improved," he said.
New committee to enforce SG personal data protection | AsiaOne, Dec 20
The Ministry of Communications and Information (MCI) will set up a Personal Data Protection Commission (PDPC) and a Data Protection Advisory Committee on Jan 2 next year to administer, and advise on the Personal Data Protection Act (PDPA) which will come into effect on the same day.
E-Payments
Thailand: E-payments surpass use of cheques | Bangkok Post, Dec 27
Consumers' volume of e-payments between July and September 2012 surpassed their cheque use, according to the Bank of Thailand. Transactions via the electronic payment system, including electronic fund transfers and plastic cards, totalled 75 trillion baht, a 25% year-on-year increase in the number of transactions, compared with a 0.6% rise in the total number of cheque transactions from the same period last year.
Vietnam: Promoting electronic payment systems | talkvietnam, Dec 15
There are four million Vietnamese living, studying and working abroad, while the labor export market has expanded and the number of internet and mobile phone users increased rapidly, which are all favorable conditions for overseas national currency exchange and money transfer markets to more rapidly develop, according to a seminar on developing electronic postal payment services in Asia-Pacific Region that took place from December 4-6 in Hanoi.
RI to launch e-payment system for public transport | futureGOV, Jan 7
The city administration of Jakarta, Indonesia will be launching a simplified electronic payment system in the city's Bus Rapid System as part of its on-going efforts to develop an integrated public transport system. According to Jakarta Vice Governor, Basuki T Purnama, the e-payment system, which is called e-Money or money card, is expected to improve commuting experience in the city by providing commuters with a fast and convenient way to settle payments in Transjakarta stops.
Private Equity
Japan backs CapAsia ASEAN infra fund | Trade Finance, Jan 7
The Japan Bank for International Cooperation (JBIC) and The Bank of Tokyo-Mitsubishi UFJ (BTMU) have recently signed agreements committing themselves to equity participation in The CapAsia ASEAN Infrastructure III (the fund), a private equity fund aimed at investment in infrastructure projects in South-East Asia. The fund is managed by Capital Advisors Partners Asia (CapAsia), a Singaporean fund management company.
M'sia: More keen on private equity investments | The Star, Jan 5
Private equity (PE)-type investments will continue to have a presence in the Malaysian corporate landscape, with the number of deals to be struck possibly growing, say industry players. But while there are many deals to be done, perennial challenges remain, such as asset owners not keen in letting go of their struggling assets and the delay in the Government's promise of divesting its business interests. Still, an encouraging landscape for PE deals has been laid, driven by a significant number of PE deals closed this year.
Insurance
Asian startups tap on crowd funding for capital | ChannelNewsAsia, Jan 8
Asia-focused private equity raised roughly US$30 billion in 2011 according to a report last year by Private Equity International. However, with more than half of that goes into China and India, startups in the rest of Asia are left with fewer funding options. According to experts, most Asian startups rely on traditional funding sources like government grants and loans from family and friends. But some said crowd funding, or sourcing for investment through the internet, could be a solution.
Insurance
Asia: Nat CATs expose emerging markets' underinsurance - Munich Re | AIR, Jan 7
The rise in severity and frequency of weather-related Nat CATs, particularly in Asia where they have quadrupled over the past 30 years, have demonstrated the significant underinsurance of government assets such as schools and hospitals as well as residential homes and crops in emerging countries, says a Munich Re report.