Active with Southeast Asia

Southeast Asia and the OECD
A mutually beneficial partnership
Southeast Asia is one of the most dynamic and diverse regions in the world,
with extensive natural resources, an expanding middle class, a young and
dynamic population and a diversified economy.With an average growth rate
of 5% over the past 15 years, it is also one of the main drivers of global growth.
The formalisation, in 2015, of an integrated ASEAN Economic Community
(AEC) by the Association of Southeast Asian Nations (ASEAN) is generating
even more opportunities for growth and employment across the region.
The OECD and Southeast Asia have a long-standing and mutually beneficial relationship that has steadily developed
since the late 1990s. Building on two decades of engagement, the OECD Southeast Asia Regional Programme (SEARP)
was inaugurated at the 2014 OECD Ministerial Council Meeting, to bring the relationship to a new, more strategic,
whole-of-government level.
Since its launch, the Programme has served as a forum to share best practices and promote regional integration
through Regional Policy Networks, supporting successive chairmanships of ASEAN on issues relevant to the ASEAN
Economic Community (AEC). In 2016, substantial contributions were made to the priorities of ASEAN, most notably
through the support provided to various Action Plans and policy frameworks on the participation in Global Value
Chains (GVCs), Access to Finance for the Micro, Small and Medium Enterprises (MSMEs) and Special Economic Zones.
The Economic Outlook for Southeast Asia, China and India was also presented at the ASEAN Business and Investment
Summit in Vientiane, Lao PDR, in September 2016.
Beyond the SEARP, the OECD also works with individual Southeast Asian countries to deliver country-specific
tools, such as Thailand’s Country Programme and the Joint Programme of Work with Indonesia. These provide such
countries with an opportunity to enhance their participation in OECD bodies and adhere to its instruments.
The OECD looks forward to deepening this partnership with Southeast Asia as a region, working closer with its diverse
countries, which face common, but also distinct challenges. I am confident that this mutually beneficial and strategic
collaboration will continue to deliver better policies for better lives in Southeast Asia, and across the OECD and
Partner countries.
ANGEL GURRÍA, OECD Secretary-General

CONTENTS . 1
Fighting transnational corruption 46
Improving tax transparency and compliance 47
Raising the bar on corporate governance 48
EMPLOYMENT AND SOCIAL DEVELOPMENT 49
Seeking best practices of social and health policies 50
Tackling gender inequality 52
Social cohesion 53
Supporting SME development and entrepreneurship 54
Promoting effective consumer policy 55
Fostering skills through education and training 56
Managing international migration 58
INDUSTRY AND INNOVATION 59
Building a knowledge economy 60
Developing first-class shipbuilding and steel capacity 62
Enhancing chemical safety 63
Boosting tourism 64
ENVIRONMENT AND ENERGY 65
Towards a cleaner and healthier environment 66
Conservation and sustainable use of biodiversity
and ecosystems 67
Combating climate change 68
Improving water management 69
Strengthening global partnerships on clean energy
and energy efficiency 70
ANNEXES 72
Adherence to OECD instruments 73
Partnership in OECD bodies and programmes 74
Participation in OECD Asian networks 75
Dialogue and data 75
THE OECD AND SOUTHEAST ASIA 2
Regional and country-level approaches 4
Southeast Asia – a dynamic region with significant
economic potential 7
Southeast Asia at a glance 8
The OECD Southeast Asia Regional Programme 10
The OECD Southeast Asia Regional Forum 14
SUSTAINABLE, BALANCED AND INCLUSIVE GROWTH 16
Maintaining economic resilience 17
Supporting green growth initiatives 20
Promoting regional development and urbanisation 21
Increasing agricultural productivity and food security 22
Promoting development and effective co-operation
worldwide 23
Better data for better policies 26
SMOOTH FUNCTIONING OF MARKETS 28
Enhancing co-operation on international investment 29
Promoting trade and upgrading in global value chains 31
Fostering sound competition 33
Developing a robust financial system 35
Strengthening connectivity, capital investment and
public-private partnerships 36
Improving financial literacy and inclusion 37
PUBLIC AND CORPORATE GOVERNANCE 38
Good regulatory practice and regulatory reform 39
Budgeting and public expenditures 41
Public procurement 42
Increasing performance in the public sector 43
Promoting open government 44
Enhancing public sector integrity 45
CONTENTS
Contents

2 . ACTIVE WITH SOUTHEAST ASIA
THE OECD AND
SOUTHEAST ASIA
With over 600 million people and a combined GDP
of USD 2.46 trillion in 2015, the Southeast Asian region is one of
the main drivers of global growth.

THE OECD AND SOUTHEAST ASIA . 3
THEOECDANDSOUTHEASTASIA
L OECD Secretary-
General Angel Gurría,
Japanese Prime
Minister Shinzō Abe,
Ministers and high-
level representatives
from Southeast Asia
and Japan at the
inauguration of the
OECD Southeast Asia
Regional Programme,
during the OECD
Ministerial Council
Meeting in Paris on
6 May 2014.
The OECD and Southeast Asia have a longstanding and mutually beneficial relationship
that has steadily developed over the last two decades. The OECD works with all 10
countries of the Association of Southeast Asian Nations (ASEAN) on a regional and
country-specific level. In 2007, OECD Ministers designated Southeast Asia as a region of
strategic and economic priority and Indonesia as a Key Partner.
The OECD supports Partner countries in Southeast Asia on the basis of a whole-of-
government approach.
l In May 2014, the OECD Southeast Asia Regional Programme was launched to
support domestic policy reforms, bring countries closer to the OECD, and support
the ambitious regional integration efforts of the ASEAN Economic Community
Blueprint 2025.
l As a Key Partner, Indonesia and the OECD have a biennial Joint Work Programme
that identifies priority areas of engagement. For 2017-2018, the focus is on
developing the business climate and supporting dynamic growth, improving
social policies and fostering inclusive growth, implementing governance and
promoting green growth. In 2015, the OECD opened an office in Jakarta to
advance its relations with Indonesia and the Southeast Asia region.
l The OECD will launch the Thailand Country Programme in the second half of 2017.
The Programme will support Thailand’s 20-Year National Strategic Plan as it strives
for high-income status. The main areas of engagement will be supporting good
governance, strengthening the business climate and competiveness, fostering
Thailand 4.0 and promoting inclusive growth.
l Through membership in the OECD Development Centre, Indonesia, Thailand and
Viet Nam share their policy experiences with 49 other emerging and developed
economies.

Regional and country-level approaches
“The Southeast Asia region has experienced
one of the most dynamic and stable periods
of economic growth in the world during
the past two decades or so, despite difficult
international conditions since the 2007-
2008 financial crisis. Economic expansion,
coupled with natural resource endowments,
a rising middle-class and abundant low-
cost labour, create ample opportunities
for trade and investment. As a provider of evidence-based policy
analysis and a platform for policy dialogue and design, the OECD
is well placed to assist ASEAN Member States in their efforts
to implement the ASEAN Economic Community Blueprint 2025,
contributing to further enhance the integration of the region.”
H.E. Sri Mulyani Indrawati, Finance Minister of Republic of Indonesia
“Three years into its launch, the Southeast
Asia Regional Programme (SEARP) has
witnessed an increasing sense of ownership
by Southeast Asian countries, both in terms
of the substantive work as well as in efforts
to integrate the Programme into the region’s
policy scene. Southeast Asia has also been
steadily mainstreamed into the work of the
OECD, which is striving to enhance its global
relevance by securing a presence in this vibrant growth centre of the
world economy. SEARP will continue to contribute to the realisation of
the ASEAN Economic Community (AEC) Blueprint, so that the process
of creating an integrated, competitive and resilient environment is
carried out in an inclusive, sustainable and rule-based manner.”
H.E. Hiroshi Oe, Ambassador of Japan to the OECD, Co-chair of the Southeast
Asia Regional Programme
L OECD Secretary-General Angel Gurría meets with H.E. Joko Widodo, President of the Republic of Indonesia, on 24 October 2016 at the Presidential Palace, Jakarta.
Copyright Press Bureau of the Presidential Office

“The OECD has traditionally supported
reform priorities and economic integration
efforts in Southeast Asian countries. As
partners, we can promote growth and
development through advancing the OECD’s
Southeast Asia Regional Programme. The
Programme has delivered concrete outputs,
including support for successive ASEAN
Chairs, and is now entering an exciting new
phase. It will continue to support the region as well as its elaborate
co-operation with regional fora, such as APEC and ASEAN, leading
up to the Programme’s Ministerial meeting planned for 2018. I
encourage the region to continue to rely on the OECD’s expertise as a
tool to advance their reform agenda. We will continue to support the
OECD’s global relations efforts in Southeast Asia through concrete
deliverables and a stronger involvement by SEA countries in OECD
standards and bodies. I am grateful to witness the evolution and
maturity of the OECD’s relation with Southeast Asia and look
forward to continue working with the OECD across many fronts to
ensure that global rules keep up with the pace of globalisation, and
succeed in addressing many of its loopholes.”
H.E. Mr Ulrich Lehner, Ambassador of Switzerland to the OECD and Chair of the
External Relations Committee
“Over the past 10 years, relations between
Thailand and the OECD have continued
to expand in both breadth and depth. Our
collaboration is very much in line with the
Royal Thai Government’s reform agenda,
Thailand’s 20 – year National Strategy (2017
– 2036) and the National Economic and Social
Development Plan (2017-2021), which aims
to move forward on key areas of structural
reform such as good governance and transparency, business climate
and competitiveness, Thailand 4.0 and inclusive growth. The launch
of the OECD Southeast Asia Regional Programme in 2014 has
reflected the priority the OECD attaches to the Region. Not only can
the ASEAN Countries benefit from the excellence of the OECD as a
platform for global policy dialogue and as an international standard-
setter, the OECD, at the same time, could learn from ASEAN’s
experience in their regional integration efforts.”
H.E. Mr Don Pramudwinai, Minister of Foreign Affairs of Thailand
J 7 June 2017. OECD
Week 2017: Renewal
of the OECD-Indonesia
Framework of Co-
operation Agreement
– H.E. Sri Mulyani
Indrawati, Minister of
Finance, Indonesia and
Angel Gurría, Secretary-
General of the OECD.

“ThelaunchoftheOECDSoutheastAsia
RegionalProgrammein2014reflectsthe
prioritytheOECDattachestotheRegion.”
H.E. Mr Don Pramudwinai, Minister of Foreign Affairs of Thailand

Southeast Asia –
A dynamic region with significant economic potential
Located in the heart of the Asia-Pacific region, ASEAN
has made remarkable progress in raising income levels,
reducing poverty and integrating into the world economy.
l Growth performance remains solid and steady. The ten
ASEAN economies are projected to see annual growth of 5.1%
during 2017-21.
l Domestic demand is the main driver of growth. In most
ASEAN countries the transition to middle and high income
country status is foreseeable within the next decade. Malaysia
is expected to become a high- income country in 2020.
l The region has a favourable demography. Southeast Asia
serves a market bigger than Europe and North America with
a population of more than 600 million. After China and India,
ASEAN has the world’s third largest population.
l The OECD and ASEAN economies are interdependent. More
than half of all FDI entering ASEAN comes from OECD countries,
with an average of around 50% in 2013-2015 (2015, Figure 1).
ASEAN attracted FDI flows amounting to 120 billion USD in
2015, or around 7% of global FDI in 2015. Around 40% of ASEAN’s
key external trading partners are OECD countries (Figure 2).
Chinese
Taipei
2,807, 2%
Hong Kong,
China
4,543, 4%
Hong Kong,
China
91,416, 4%
Chinese
Taipei
94,338, 4%
Korea
5,710, 5%
India
58,554, 3%
Korea
122,484, 5%
New Zealand
2,241, 2%
Australia
5,247, 4%
EU
20,128, 17%
Others
18,449, 15%
Japan
17,559, 15%
China*
8,256, 7%
USA
13,646, 11%
Intra-ASEAN
22,232, 18%
Others
280,463
12%
EU
283,152
13%
Japan
238,044
11%
USA
212,343, 9%China*
345,764, 5%
Intra-ASEAN
543,751, 24%
*Excluding Hong Kong and Chinese Taipei
Chinese
Taipei
2,807, 2%
Hong Kong,
China
4,543, 4%
Hong Kong,
China
91,416, 4%
Chinese
Taipei
94,338, 4%
Korea
5,710, 5%
India
58,554, 3%
Korea
122,484, 5%
New Zealand
2,241, 2%
Australia
5,247, 4%
EU
20,128, 17%
Others
18,449, 15%
Japan
17,559, 15%
China*
8,256, 7%
USA
13,646, 11%
Intra-ASEAN
22,232, 18%
Others
280,463
12%
EU
283,152
13%
Japan
238,044
11%
USA
212,343, 9%China*
345,764, 5%
Intra-ASEAN
543,751, 24%
*Excluding Hong Kong and Chinese Taipei
Figure 1. Sources of Foreign Direct Investment Inflows into ASEAN,
USD million, 2015
Figure 2. ASEAN Trade Partner Countries/Economies
(Exports and Imports) USD million, 2015
Source: ASEAN Secretariat (2016)
Source: ASEAN Foreign Direct Investment Statistics Database

Southeast Asia at a glance
The OECD’s global relations strategy seeks to make the
Organisation a more effective and relevant Global Policy
Network. Our engagement with Southeast Asia, a region of
strategic importance for the OECD, encompasses a growing
range of policy areas and involves both regional-level initiatives
and country-level support. Collaboration has deepened
and the Southeast Asia Regional Programme (SEARP) has
served to facilitate a stronger participation of SEA countries
in a broad range of OECD bodies, instruments and activities.
This partnership has also been underpinned by the OECD’s
contribution to G20 and the SDGs, in particular in the areas
of inclusive growth, trade and investment, and taxation.
We are also enriching our co-operation with regional fora of
key importance such as ASEAN and APEC. Working towards
a Country Programme with Thailand and potentially other
countries should also play a key role in supporting SEA
countries’reform efforts and disseminating best practices to
the benefit of SEA economies and societies. We look forward
to further deepening this mutually beneficial and strategic
co-operation in the future.
Andreas Schaal, Director of Global Relations, OECD

Myanmar
50,280,000
5,500 8.5%
♂: 65 – ♀: 68
Singapore
5,530,000
85,400 1.8%
♂: 80 – ♀: 86
Malaysia
31,000,000
26,200 4.7%
♂: 73 – ♀: 77
Brunei
Darussalam
410,000
79,500 1.8%
♂: 76 – ♀: 79
Indonesia
255,500,000
11,150 5.4%
♂: 67 – ♀: 71
Lao PDR
6,810,000
5,350 7.5%
♂: 64 – ♀: 67
Cambodia
15,180,000
3,500 7.3%
♂: 67 – ♀: 71
Philippines
100,980,000
7,300 6.1%
♂: 65 – ♀: 72
Thailand
65,730,000
16,130 3.6%
♂: 72 – ♀: 78
Viet Nam
91,710,000
6,000 6.2%
♂: 71 – ♀: 81
Source: OECD (Economic Outlook
for Southeast Asia, China and India
2017), WHO
Average life expectancy (2015)
Population (2015)
GDP per capita (PPP) USD
Real GDP growth-annual percentage change (2017-21 average forecast)

The OECD Southeast Asia Regional Programme
The OECD Southeast Asia Regional Programme (SEARP) was inaugurated by OECD
Secretary-General Angel Gurría and Japanese Prime Minister Shinzo Abe at the Ministerial-
level OECD Council Meeting in May 2014. It aims to support domestic reform priorities,
regional integration efforts in Southeast Asia, and bring the countries closer to the OECD.
It also seeks to foster mutual learning and the exchange of good practices between policy
makers in Southeast Asia and OECD countries.
MCM: Mandate to establish a
comprehensive Southeast Asia
Regional Programme
l Investment Policy Review of
Malaysia
l Review of Innovation Policy
in Southeast Asia
l Economic Outlook for
Southeast Asia, China and
India 2013
Myanmar
l Review of Innovation Policy
of Viet Nam
l Economic Outlook for Southeast
Asia, China and India 2015
l ASEAN SME Policy Index 2014
l Revenue Statistics in Asian Countries
2014: Trends in Indonesia and
Malaysia
l Review of National Policies for
Education of Indonesia
l Implementing Good Regulatory
Practice in Malaysia
l Report on Private Infrastructure
Investment: Availability of Risk
Mitigation Instruments in ASEAN
Member States
2015: Trends in Indonesia, Malaysia
and the Philippines
March: First OECD Southeast
Asia Regional Forum: Regional
CompetitivenessforSustainedGrowth, in
Bali, Indonesia
May: Official launch of the SEARP during
the OECD Ministerial Council Meeting
March: Second OECD Southeast Asia
Regional Forum: Enhancing Regional
Integration and Openness, in Jakarta,
Indonesia
MEETINGSOUTPUTS
2013 2014 2015

Philippines
l Review of Innovation Policy of
Malaysia
l Review of National Policies for
Education of Thailand
2016: Trends in Indonesia, Japan,
Korea, Malaysia, the Philippines and
Singapore
l OECD Review on Local Job
Creation: Employment and Skills
Strategies in the Philippines
l Investment Policy Review ofViet
Nam
l Investment Policy Review of Lao
PDR
Cambodia
l Policy Handbook on Strengthening
Women’s Entrepreneurship in ASEAN
l ASEAN SME Policy Index 2018
l ASEAN Investment Policy
Review
August: Fourth OECD Southeast Asia
Regional Forum in Opportunities
and Policy Challenges of Digital
Transformation in Southeast Asia, in
Bangkok, Thailand
First OECD Southeast Asia Regional
Programme’s Ministerial Meeting
June: Third OECD Southeast Asia
Regional Forum: Boosting Productivity
and Inclusiveness in Southeast Asia, in
Hanoi, Viet Nam
2016 2017 2018
Sustainable
infrastructure
Good
Regulatory
Practice
6 Regional Policy
Networks (RPN)
3 Initiatives
and Regional
Economic
Outlook
Tax
GENDER
INNOVATION
TRADE
Education
and Skills Investment
REGIONAL
ECONOMIC
OUTLOOK
SMEs

SEARP supports ASEAN and APEC
The OECD, through the Programme, has also worked closely with
ASEAN in implementing the ASEAN Economic Community Blueprint
2025“as an institution of strategic collaboration”.
The engagement includes support for the ASEAN Secretariat
and the Chairs in delivering: ASEAN Principles for Public-Private
Partnership (PPP) Frameworks in 2014; the ASEAN Strategic Action
Plan for Small and Medium-sized Enterprises Development 2016-
2025 (SAPSMED 2025) in 2015; and deliverables in 2016 including
the ASEAN Work Plan for Enhancing GVC Participation, the ASEAN
Institutional Framework on Access to Finance for Micro, Small and
Medium Enterprises (MSME); the Report and Work Programme
on Starting a Business in ASEAN and conducting the Validation
Workshop on Starting a Business in ASEAN, ASEAN Guidelines for
Special Economic Zone (SEZ) Development and Collaboration, and
the launch of the OECD Project for the Support of ASEAN SMEs.
The OECD also works with Asia-Pacific Economic Cooperation
(APEC) via the Finance Ministers and Senior Officials Processes.
During Viet Nam’s host year 2017, the OECD will deliver work on
long-term investment in infrastructure, disaster risk mitigation,
financial literacy and BEPS for the Finance Ministers’Meeting on
19-21 October 2017.

“We have been working with OECD on
several important initiatives to advance
our regional economic integration agenda.
These include the successful delivery of
priority deliverables for Lao PDR’s ASEAN
Chairmanship (2016), namely the report
and work programme on starting a
business, the institutional framework on
access to finance for MSMEs, and guidelines
for special economic zones development and collaboration. We have
also leveraged on OECD’s expertise and experience to formulate
work plans for new areas of co-operation including global value
chains and good regulatory practice. We look forward to continue
working with OECD to implement the AEC Blueprint 2025 as
ASEAN pursues productivity-led growth strategy towards more
inclusive and sustainable economic development in the midst of
growing economic and political uncertainty.”
Lim Hong Hin, Deputy Secretary-General of ASEAN for ASEAN Economic
Community
“OECD is an important partner of Viet
Nam in knowledge sharing and capacity
building in development issues. Viet Nam
supports and actively participates in the
implementation of the OECD Southeast
Asia Regional Programme (SEARP), which
brings ASEAN countries tangible benefits
through policy dialogue in economic reform
and integration towards sustainable and
inclusive development. The OECD Forum on Southeast Asian
Region hosted by Viet Nam in co-ordination with OECD in June
2016 contributed to enhancing dialogue and collaboration between
ASEAN countries and OECD.
In 2017, Viet Nam is the host of the Economic Leaders’ Meeting
of the Asia Pacific Economic Co-operation (APEC), an important
economic forum connecting two rims of the Pacific. Viet Nam
appreciates OECD for its support to APEC 2017’s priorities and
expects OECD’s practical contribution to sharing in-depth analysis
and discussion on key development issues across Asia Pacific in the
new global context.”
Bui Thanh Son, Permanent Deputy Minister of Foreign Affairs of Viet Nam

The OECD Southeast Asia Regional Forum
The OECD Southeast Asia Regional Forum is a platform
for sharing policy experiences and best practices with a
different thematic focus each year.
The OECD Southeast Asia Regional Forum is the main OECD
event to take place in the region each year. It is designed to
provide a platform for policy dialogue and the exchange of
views on global and regional challenges facing policy makers
in Southeast Asia and OECD countries. The aim is to develop a
common understanding of joint challenges and identify best
policy solutions.
The OECD benefits greatly from ASEAN country experiences and
perspectives, which enrich the policy debate at the OECD. At the
same time, Southeast Asian countries can tap into the wealth of
OECD expertise to inform their policy reforms.
Each year the Forum addresses a different thematic focus of
relevance to both Southeast Asia and the OECD:
2014 – Regional Competitiveness for Sustained Growth;
2015 – Enhancing Regional Integration and Openness;
2016 – Boosting Productivity and Inclusiveness in Southeast
Asia;
2017 – Opportunities and Policy Challenges of Digital
Transformation in Southeast Asia
J Japanese
Parliamentary Vice-
Minister for Foreign
Affairs Masakazu
Hamachi (standing)
provides opening
remarks alongside
(left to right) Bui Thanh
Son (Vice Minister
of Foreign Affairs of
Viet Nam), Deputy
Secretary-General of
ASEAN AKP Mocha, and
OECD Deputy-Secretary-
General Douglas Frantz.

J Speakers from SEA
and OECD countries
at the 2015 Southeast
Asia Regional Forum
in Jakarta, Indonesia in
March 2015.
L High-level
representatives from SEA
and OECD countries at
the 2016 Southeast Asia
Regional Forum in Hanoi,
Viet Nam in June 2016.

SUSTAINABLE,
BALANCED
AND INCLUSIVE
GROWTH16 . ACTIVE WITH SOUTHEAST ASIA

OECD Economic Surveys are an important tool for
exchanging views on best practice and for improving
policy design for OECD Member and Key Partner countries.
These Surveys have already been applied to several
Southeast Asian countries that face challenges to achieve
high-income country status.
The first OECD Economic Survey of Malaysia was released in
November 2016, with two in-depth thematic chapters focused
on boosting productivity and fostering inclusive growth.
The assessment shows the importance of boosting productivity
and growth if the country is to raise its living standards. It calls
for further reform efforts in a wide range of areas to make the
economy more innovative, open, competitive, transparent and
green.
The report also emphasises the importance of socially inclusive
growth. This requires reforms to boost access to quality
education, social protection, labour force participation for
women and older persons, as well inclusiveness in the tax and
social transfer system.
Maintaining economic
resilience
“Global conditions are becoming
increasingly challenging, underpinned by
complex global interlinkages and shifting
trends. Inward-looking policies and a sharp
tightening of global finances, particularly
in advanced economies, could dampen
the prospects of global growth and trade
activity. More innovative strategies are
imperative for emerging and developing
economies to remain resilient, sustainable and inclusive in this
challenging time.
OECD’s multi-faceted expertise in policy research and advocacy
complements policymakers in this region by providing an objective
outside-in perspective and tools for the benchmarking of global
practices. Mainstreaming and engendering these innovative
policy tools will support government efforts to increase economic
resilience and the enhanced wellbeing of their people. On that note,
we look forward to further collaborations with the OECD for better
socioeconomic outcomes.”
Dr Ali Hamsa, Chief Secretary of the Government of Malaysia
The publication was well-received by Malaysian authorities, and
its launch was hosted by Dr Ali Hamsa, Chief Secretary of the
Government of Malaysia. The preparation of the report allowed
for thorough interactions between OECD economists and the
Malaysian authorities, together with exchanges of best practices
between OECD Member countries and Malaysia in the Economic
and Development Revue Committee meeting, thereby further
strengthening the relationship between the OECD and Malaysia.
The second assessment report of Malaysia is to be published in
2018. The possibility of conducting an economic assessment of
another Southeast Asian country will be explored.
www.oecd.org /eco
SUSTAINABLE, BALANCED AND INCLUSIVE GROWTH . 17
SUSTAINABLEGROWTH
SCAN TO
READ THE
REPORT

The Economic Outlook for Southeast Asia, China and India
produced by the OECD Development Centre, in collaboration
with several regional organisations, monitors short-term
macroeconomic challenges and medium-term economic
trends in the Southeast Asia region. The report, released twice
a year, is intended to inform policy dialogue with key regional
stakeholders in Southeast Asia and beyond.
The 2017 edition of the Outlook, launched in Paris on 15
December 2016, concluded that growth in emerging Asia will
remain robust in the near-term. However, to address potential
growth risks, the report encourages governments to retain their
trade competitiveness, continuously monitor banking sector
fragilities, and to foster knowledge and technology transfer in
order to enhance productivity.
In its special thematic chapter regarding energy challenges in
emerging Asia, issues related to expanding access and improving
regional connectivity are highlighted. To this end, the report
Maintaining economic resilience
L On 11 November, DSG Rintaro Tamaki presented the first Economic Assessment
of Malaysia in Kuala Lumpur with Dr Ali Hamsa, Chief Secretary of the Government
of Malaysia, in addition to a new Review of Innovation Policy.
SCAN TO
READ THE
REPORT
provides policy options for governments to assist them in creating
and enabling an environment for renewable energy investments.
The Outlook serves as an important medium for the
Organisation in understanding economic developments in
emerging Asia. It provides insights through policy dialogues and
consultations with government representatives and delegates
from other institutions, such as: UNESCAP, ERIA, AMRO, ADB/
ADBI, and the ASEAN Secretariat. The report likewise serves as a
tool to structure the priorities for OECD support in the region.
The 2017 Outlook received good reviews from officials of
various governments, OECD personnel, and the private sector.
The launch of the report was well-attended and the forum
successfully elicited intellectually stimulating discussions about
pressing issues in emerging Asia.
The 2018 edition will look at the development of the digital
economy in emerging Asia with a special focus on e-commerce
(and its relevance for MSMEs), cross-border transactions and
the impact of digitalisation on the region’s manufacturing and
service sectors.
www.oecd.org/dev/asia-pacific

“The collaboration with the OECD based
on the Economic Outlook for Southeast
Asia, China and India has proven to be
an intellectually stimulating venture.
The Outlook itself and the ASEAN-OECD
Narrowing Development Gap Indicators
have become undeniable policy reference
tools for the region.”
Rony Soerakoesoemah, Assistant Director of the
Economic Community Department, ASEAN Secretariat
L Launch of the Economic Outlook for Southeast Asia, China and India 2017, OECD Headquarters in Paris, 15 December 2016.
Left to right: Kensuke Tanaka, Head of Asia Unit, OECD Development Centre, Mario Pezzini, Director, OECD Development Centre, Rintaro Tamaki, OECD Deputy
Secretary-General, Jong-won YOON, Korean Ambassador to the OECD, Ma. Theresa Lazaro, Philippines Ambassador to the OECD.
SUSTAINABLEGROWTH

The environmental risks faced by emerging and developing
countries today require a fundamental shift in approach.
By integrating environmental considerations and the value
of natural capital into economic decision-making and
development planning, green growth can help Southeast
Asian economies secure a stronger and more secure future.
Five Southeast Asian cities participated in the OECD Urban
Green Growth in Dynamic Asia project launched in 2013. This
has resulted in studies of policies and governance practices to
promote green growth in Bangkok (Thailand), Iskandar Malaysia
(Malaysia), Haiphong (Viet Nam), Bandung (Indonesia) and Cebu
(Philippines). These cities also hosted peer-learning workshops
in 2014-2015, supported by the OECD Knowledge Sharing
Alliance.
Furthermore, building on the 2013 publication Putting Green
Growth at the Heart of Development, the OECD DAC Network on
Environment and Development has launched work to identify
good practices in development co-operation to support green
growth in developing countries, including several Southeast
Asian economies.
At the OECD Green Growth and Sustainable Development
Forum in November 2016, the synthesis report of the Urban
Green Growth in Dynamic Asia project was launched.
In 2013 and 2015, the OECD organised knowledge sharing
workshops to facilitate knowledge exchanges among cities,
national governments and development partners, as well as
through the dissemination of OECD examples. Interactions
among institutions for development co-operation proved the
most successful, by giving them an opportunity to discuss
their respective projects. Furthermore, interaction among
representatives from adjacent municipalities of the same
metropolitan region proved useful as such interactions are rare,
although the need for horizontal co-operation is strong.
Supporting green growth
initiatives
The OECD’s Green Growth Strategy, including its key publication
Towards Green Growth, has set out a comprehensive guide for
encouraging green growth and measuring progress towards
it. The OECD will continue to apply the Urban Green Growth
Policy Framework to more cities in Southeast Asia with the next
Green Growth and Sustainable Development Forum on Greening
the Ocean Economy on the 21-22 November 2017. The event’s
focus on investment, innovation and employment aspects of
the fast-growing ocean-based industries will be of particular
relevance to Southeast Asia.
www.oecd.org/greengrowth/asia.htm
www.oecd.org/regional/greening-cities-regions/
citiesclimatechangeandgreengrowth.htm
www.oecd.org/greengrowth/knowledge-sharing-for-urban-
green-growth-in-dynamic-asia.htm
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SUSTAINABLEGROWTH
Countries need competitive and dynamic cities and regions
to achieve their economic, social and environmental
objectives. The OECD examines how best to promote urban
and regional competitiveness, as well as effective and
innovative territorial governance, providing policy advice
to governments at national and sub-national levels.
Co-operating with Southeast Asian countries has helped the
organisation to understand diverse policy contexts and to
develop effective policy strategies in Southeast Asian countries,
which could be applied to other regions.
Regions and cities are important hubs of productivity and
innovation and play a key role in providing skills and creating
environmental efficiency for sustainable and inclusive growth.
The OECD Territorial Reviews at the national and metropolitan
levels (urban and rural) aim to evaluate the economic, social
and environmental performance of an area, and to assess and
recommend policies to strengthen competitiveness, social
inclusion and environmental sustainability.
National Urban Policy Reviews also provide a comprehensive
assessment of a country’s urban policies by focusing on those
that explicitly or implicitly affect urban development. Currently,
the OECD is undertaking the National Urban Policy Review of
Viet Nam.
For example, the National Urban Policy Review of Viet Nam
analyses the country’s urban structure and development
trends in an internationally-comparable framework, identifies
the main challenges that urban and metropolitan areas face
in Viet Nam, assesses how current urban policies assist in
achieving national environmental and green growth goals, and
provides practical policy recommendations. Such accumulated
knowledge is not only useful for OECD countries but also for
fast urbanising developing and emerging economies.
Promoting regional development
and urbanisation
In October 2016, the OECD launched the National Urban Policy
Programme (NUPP) at the Habitat III conference in Quito.
The NUPP is a joint initiative by the OECD, UN Habitat and
Cities Alliance to support the design and implementation of
a National Urban Policy (NUP) for each participating country,
which is a key implementation tool of the New Urban Agenda.
In addition to the current collaboration in Viet Nam, the OECD
stands ready for further NUP support in Southeast Asian
countries such as Malaysia and Myanmar, under the framework
of the NUPP.
www.oecd.org/gov/regional-policy
www.oecd.org/gov/regional- policy/urbandevelopment.htm
www.oecd.org/gov/national-urban-policies.htm
L High level seminar Towards a New Urban Agenda on 20 April 2017 in Hanoi.

Boosting productivity and innovation, improving access to
food and increasing agricultural trade flows will enhance
food security in the ASEAN region.
Co-operation between the OECD and Southeast Asian countries
has deepened and covers a range of collaborative analytical
activities. Following the Review of Agricultural Policies of
Indonesia, Viet Nam and the Philippines, these three countries
have been included in the annual Agricultural Policy Monitoring
and Evaluation report which measures government support to
agriculture for 52 countries. The region will be the subject of
a special thematic chapter in the 2017 OECD-FAO Agricultural
Outlook. In May 2017, the study Building Food Security and
Managing Risk in Southeast Asia was released. This study
puts forward a number of policy recommendations to ensure
that the ASEAN agriculture and fishing industries contribute
effectively and efficiently to ensuring regional food security.
In May 2017, the Global Forum on Agriculture focused on how to
ensure food security for Southeast Asian populations, and how
to mitigate the range of risks threatening it.
As an important region for global agricultural trade, the
addition of three Southeast Asian countries to the Agricultural
Policy Monitoring and Evaluation exercise is invaluable. This
report provides policy recommendations based on the latest
agricultural policy developments in these countries and on
updated estimates of the level of support provided to their
farming sectors. This regular assessment provides the necessary
broad perspective on agricultural policy developments at a
time when the global agriculture and food sector is facing both
unprecedented challenges and exciting new opportunities.
The Building Food Security and Managing Risk in Southeast Asia
report, completed in close consultation with Southeast Asian
countries, provided a number of recommendations to improve
policy approaches to the agriculture and fishing industry
Increasing agricultural productivity
and food security
in order to improve food security and better manage food
insecurity risk.
As Southeast Asia has become more integrated in world agro-
food markets, they have become a significant source of income
for producers as well as food for consumers. Therefore, the most
efficient and resourceful functioning of agricultural markets is
extremely important for regional policymakers. Further work in
2017-18 will involve the exploration agriculture and food global
value chains in Southeast Asia and the links between agro-food
trade, trade policy and food security.
www.oecd.org/tad/agricultural-policies/
www.oecd.org/tad/agriculture-policy-notes.htm
www.oecd.org/tad/agricultural-policies/innovation-food-
agriculture.htm
www.oecd.org/tad/agricultural-policies/monitoring-and-
evaluation.htm
www.agri-outlook.org
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SUSTAINABLEGROWTH
Multi-Dimensional Country Reviews (MDCRs) are a
horizontal initiative led by the OECD Development Centre
to support developing countries in designing high-impact
development strategies. From Southeast Asia, Myanmar
has recently completed an MDCR, and those of the
Philippines and Thailand are currently being undertaken.
The MDCRs adopt a multi-dimensional perspective to identify
the key constraints to development, assessing whether barriers
to growth also impede deeper determinants of economic
development or citizen well-being.
They combine rigorous benchmarking and measurement
metrics with strategic foresight and incorporate the OECD
Well-Being Framework with structural economic analysis.
Furthermore, MDCRs have recently been expanded and now
include a framework to measure and monitor progress in
implementation of the SDGs. This additional element will assist
countries in prioritising SDG targets and crafting implementable
strategies to achieve them.
Promoting development and effective
co-operation worldwide
The third and final phase of the MDCR of Myanmar was
launched in Nay Pyi Taw and Yangon in June 2016. The MDCR of
the Philippines is currently underway and a review of Thailand
was started in Q2 2017.
MDCRs are an OECD tool to engage with non-Member countries
and are designed to be a two-way street. Namely, they extend
the OECD and the Development Centre’s knowledge base and
best practices in specific policy dimensions to non-Member
countries. At the same time, MDCRs bring experiences from
developing countries to the OECD, which are then used to
broaden perspectives on development challenges as well as
solutions.
Going forward the OECD and the Development Centre will
continue to work with the Philippines and Thailand, helping
them to craft high-impact development strategies and support
SDG prioritisation and implementation.
www.oecd.org/development/mdcr
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The Global Partnership for Effective Development
Co-operation is a multi-stakeholder platform used to
maximise the effectiveness of all forms of co-operation for
development. Jointly supported by the OECD and UNDP,
it engages Development Co-operation Directorate and
Development Assistance Committee (DAC) members and
countries in the Southeast Asia region to strengthen the
quality of their development co-operation.
Countries and regional bodies in Southeast Asia actively
collaborate with the Global Partnership for Effective
Development Co-operation to maximise the effectiveness of
all forms of co-operation for development, in order to reach the
Sustainable Development Goals (SDGs) by 2030. Six countries
(Cambodia, Lao PDR, Myanmar, the Philippines, Timor-Leste, Viet
Nam) from Southeast Asia have contributed to the Partnership’s
2016 progress report, Making Development Co-operation More
Effective, and eight countries participated in the High-level
Meeting of the Global Partnership in Nairobi in 2016. The
Republic of Korea hosts the annual Global Partnership Fora and
Learning and Acceleration Workshops.
The Global Partnership brings together key development
stakeholders and spurs progress on the four principles of the
Global Partnership. These are: ensuring country ownership of
development efforts, adopting a results-based focus, establishing
inclusive partnerships for development, and enhancing
transparency and accountability. It also provides an interface
for dialogue on effective development co-operation between the
OECD Development Assistance Committee and the region.
The monitoring round on development effectiveness
commitments to prepare the 2016 Progress Report engaged the
governments in the region. The results indicated that Southeast
Asian countries have taken the lead in planning for development
results. Of these, most development partners are aligning their
programmes and projects to national priorities and delivering
development co-operation in a predictable manner at 94%.
However, it should be noted that partners need to make a greater
effort to increase medium-term predictability of development co-
operation, as well as transparency and data sharing.
Development partners use Southeast Asian countries’ institutions
and systems to channel development co-operation funds more
often (61%) than for other regions (51%). Governments from
the region in turn also record these funds on national budgets
submitted to parliament (79%) than in other regions (66%).
The OECD will continue to work closely with Southeast
Asian countries, civil society and businesses to improve the
effectiveness of development co-operation in the region and
thereby support the achievement of the SDGs by 2030. The
OECD’s Development Assistance Committee (DAC) will also
collaborate with countries and regional bodies in the region to
advance mutual learning and facilitate joint action on effective
development co-operation.
www.effectivecooperation.org
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Promoting development and effective co-operation worldwide

SUSTAINABLEGROWTH
Making co-operation more effective and coherent between
foundations and governments in developing countries lies
at the heart of the Guidelines for Effective Philanthropic
Engagement. They were designed by the OECD’s Network
of Foundations Working for Development (netFWD),
and Myanmar, India, Kenya and Mexico pioneered the
implementation of these Guidelines.
In 2016, the OECD Development Centre’s netFWD published
the synthesis report Bringing Foundations and Governments
Closer: A Cross-Country analysis, which compared government-
foundation co-operation in India, Kenya, Mexico and Myanmar.
In Myanmar, the netFWD has been collaborating with the
Ayeyarwaddy Foundation and the British Council, who helped
to co-ordinate the project at the local level. The Myanmar study
was launched together with the Daw Khin Kyi Foundation in
Nay Pyi Taw in June 2015.
The synthesis report showed that engagement between
governments and foundations is still low in Myanmar, and
new compared to other reviewed countries. Historically,
there has been little interaction between foundations and the
government; however, with the election of a new government
in early 2016 new opportunities for engagement are being
opened. For instance, the Ministry of Social Welfare, Relief and
Resettlements, the body in charge of relations with foundations
and civil society, has begun to reach out to foundations.
Yet, as the report shows, data sharing remains inconsistent and
more could be done. The pilot project has also raised awareness
on opportunities for increased dialogue and better partnerships
between state officials and foundations in support of youth and
entrepreneurship. In addition, it has contributed comparative
insights into Myanmar’s philanthropic model and its nascent
engagement with government.
www.oecd.org/site/netfwd/ebook_Cross_Country_Analysis.pdf
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REPORT L Myanmar’s President Htin Kyaw in his former capacity as Head of the Daw Khin
Kyi Foundation with members of the Board and the OECD Development Centre’s
netFWD coordinator Emilie Romon at the launch of the Guidelines for Effective
Philanthropic Engagement country study of Myanmar, Nay Pyi Taw, June 2015.

The OECD’s Development Assistance Committee (DAC)
has modernised its international statistical framework for
measuring development finance.
The OECD has developed a new measurement framework Total
Official Support for Sustainable Development (TOSSD), for
development finance. The TOSSD concept was recognised in
the Addis Ababa Action agenda and shows potential to support
the monitoring of SDG financing, particularly the SDG 17 to
“strengthen the means of implementation and revitalise the
global partnership for sustainable development”.
The OECD carried out a number of country pilot projects in
order to test, directly with developing country governments, the
utility and the technical design of the measure as it was being
developed. The Philippines was chosen as a case study because
of the government’s strong commitment to the SDGs, including
SDG-relevant tools and processes.
Better data for better policies
The main objective of the ongoing Philippines pilot study is to
scope the parameters of TOSSD by:
l Identifying the potential of TOSSD to meet the needs of the
Philippines, particularly in increasing the transparency of
external financing and strategic planning;
l Identifying adjustments to the statistical features of TOSSD,
both in terms of the nature of activities and the instruments
to be included in the framework
This pilot project will place officially-supported resources
within the broader context of available external development
finance. In this regard, the project will also consider other
external funding sources such as remittances, private donations
(including from private foundations), and other private funds
at market terms – all of which represent significant inflows at
country level supporting sustainable development.
www.oecd.org/dac/financing-sustainable-development/
www.oecd.org/dac/financing-sustainable-development/tossd-
public-consultation.htm
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SUSTAINABLEGROWTH
The Revenue Statistics in Asian Countries 2016: Trends in
Indonesia, Malaysia, the Philippines and Singapore report
provides detailed, internationally comparable data on tax
revenues for five Asian economies: Indonesia, Malaysia,
the Philippines, and Singapore as well as for Japan
and Korea. Its approach is based on a well- established
methodology developed by the OECD Revenue Statistics
database and enables the comparison of tax systems
across Africa, Asia, Latin America, the Caribbean and OECD
Member countries.
The third edition of the Revenue Statistics in Asian Countries
was launched in November 2016 at the Asian Development
Bank headquarters in Manila and includes data on Singapore
for the first time–increasing the country coverage in the report
to six. It provides an overview of the main taxation trends as
well as attribution by sub-level of government from 1990-2014.
This edition of the report also contains a special feature on the
development of segmented taxpayer offices in Southeast Asian
tax administrations.
The Revenue Statistics in Asian Countries report seeks to
harmonise data definitions and present selected Southeast
Asian economies benchmarked against OECD best practices.
It is a valuable resource for policymakers, academia and the
broader development community, as well as for OECD staff
responsible for analysing fiscal issues in the region and globally.
The fourth edition of the Revenue Statistics in Asian Countries
was released on 20 July 2017, in Manila.
www.oecd.org /tax/revenue-statistics -in-asian-countries-2016-
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L Launch of the Revenue Statistics in Asian Countries, Manila, the Philippines,
29 November 2016.

SMOOTH
FUNCTIONING
OF MARKETS

SMOOTH FUNCTIONING OF MARKETS . 29
FUNCTIONINGMARKETS
Investment has been a key priority for ASEAN for many
years and features prominently in the ASEAN Economic
Community Blueprint 2025. At the same time, Southeast
Asia has been an important region for OECD work on
investment, notably through its Investment Policy Reviews.
The OECD has further deepened its co-operation with Southeast
Asia on investment through its Investment Policy Reviews, which
are conducted in collaboration with the ASEAN Secretariat. It
has also boosted its co-operation via regional investment policy
dialogues, including regular meetings of the Regional Policy
Network on Investment, where investment policy reforms
are discussed by officials and experts from ASEAN and OECD
Member countries with experiences shared. The IPR has been
undertaken for Viet Nam (2009), Indonesia(2010), Malaysia(2013),
Myanmar (2014), Philippines (2016), as well as Lao PDR, Cambodia
and a second review of Viet Nam, with the latter three due to be
published in 2017. Almost all Southeast Asian countries feature
in the OECD FDI Regulatory Restrictiveness Index and some
of them also regularly participate in the OECD Freedom of
Investment Roundtable, through which governments exchange
information and experience on investment policies, including
new approaches to bilateral investment treaties.
The regional component of the OECD’s investment co-operation
with ASEAN effectively links strengthening national investment
policy frameworks to regional investment policy development
and harmonisation.
Through its co-operation with Southeast Asia on investment,
the OECD is increasingly well-anchored in the region, not
only as a global reference and standard-setter, but also as
an institutional and economic partner. The Organisation’s
collaboration with one of the most dynamic regions in the world
has also contributed to galvanising policy discussions at the
OECD and the integration of innovative policy practices in the
latest investment thinking.
Enhancing co-operation
on international investment
Going forward, the third meeting of the Regional Policy Network
on Investment will take place in July 2017 in Bangkok and will
be co-chaired by Thailand and Australia. The Investment Policy
Reviews of Lao PDR and Viet Nam will be launched in the third
quarter of 2017. In addition, a regional Investment Policy Review
is currently being prepared and will be released in early 2018.
In the framework of an OECD-wide project supported by the
Government of Canada, an in-depth study will be prepared
on the role of investment and investment-related policies for
Southeast Asian SME participation in global value chains. This
project will include enterprise surveys and case studies in
partnership with other international organisations.
“The recommendations from the Reviews
are candid, impartial and highly practical.”
Aung Naing Oo, Director General, Ministry of
National Planning and Economic Development of
Myanmar (Phnom Penh, 12 April 2017)

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L Adrian Cristobal, Secretary of Trade and Industry,
Philippines, with Deputy Secretary-General Douglas
Frantz, at the launch of the Investment Policy Review
of the Philippines in Paris, France on 26 April 2016.
OECD
Southeast Asia
Regional Programme
The Regional Policy Network
for Investment works to
strengthen regional co-operation
on investment policies and
promotion.
Enhancing co-operation on international investment

FUNCTIONINGMARKETS
Trade liberalisation has played a key role in the economic
transformation of Southeast Asian countries, whose trade,
investment and production are increasingly organised
around global value chains (GVCs).
ASEAN countries have seized upon new opportunities offered
by GVCs and participation has grown across the board, in
turn increasing employment and economic prosperity. The
importance of GVCs in moving towards “a highly integrated
and cohesive economy” is underscored in the ASEAN Economic
Community Blueprint 2025. Continuing the liberalisation of
trade for goods, services and investment, as well as undertaking
regulatory reform and investing in skills, will be key in achieving
the ambitious goals being set out.
Promoting trade and upgrading
in global value chains
The OECD and Southeast Asian countries collaborate on a
range of trade-related issues. The Trade Facilitation Indicators
(TFIs) cover the full spectrum of border procedures for more
than 160 countries, including all 10 ASEAN member states. The
Services Trade Restrictiveness Index (STRI) database covers 44
countries in 22 services sectors, including Indonesia. The OECD-
WTO Trade in Value Added (TiVA) database currently covers
62 countries including 8 ASEAN member states. Furthermore,
countries like Malaysia already use the OECD Initiative for
Policy Dialogue on GVCs, Production Transformation and
Development to share its experiences on upgrading strategies.
L Making GVCs Work for ASEAN: OECD-ERIA symposium June 2016, Ha Noi, Viet Nam.

Promoting trade and upgrading in global value chains
The OECD is actively involved in helping ASEAN countries make
the most out of GVCs. A recent study on Using Foreign Factors
to Enhance Domestic Export Performance analyses how ASEAN
countries can leverage reforms and foreign value added to
enhance their domestic export performance. Another recently
completed study aims to map how SMEs in the region are
engaging in GVCs, noting that SMEs may be facing constraints
to accessing imports which limit their ability to draw benefits
from more efficient sourcing. It also highlights that many SMEs
engage in GVCs indirectly, underscoring the need to foster
domestic linkages with larger domestic or multinational firms.
The OECD and Southeast Asian countries will continue to deepen
co-operation in coming years. Going forward the OECD will:
l Continue to assist the ASEAN secretariat in maximising the
benefits of GVC participation.
l Deepen the analysis of how SMEs integrate in GVCs, providing
policy guidance on how to make the benefits of participation
more inclusive.
l The STRIs for 6 of 22 sectors have been completed as one
element in the broader Economic Assessment of Malaysia.
The OECD will now work on adding Malaysia to the STRI
indicators for transport and logistics (8 additional sectors).
l Engage in negotiations to include additional countries from
Southeast Asia in the STRI database.
www.oecd.org/trade
www.oecd.org/tad/trade-policy-notes.htm
www.oecd.org/tad/policynotes/oecd-trade-brochure.pdf
www.oecd.org/trade/facilitation
http://oe.cd/stri
http://oe.cd/gvc
http://oe.cd/tiva
OECD
Southeast Asia
Regional Programme
TheTrade Initiative works to
identify areas for further
engagement on trade issues
relevant to enhancing
connectivity in Southeast Asia.

Encouraging a fair, sound and rules-based culture of
competition contributes to increased productivity growth,
innovation and overall economic growth, in addition to
playing a role in reducing inequality and poverty. The
OECD provides guidance on competition laws and policy,
partnering with ASEAN and ASEAN member countries
to assist governments in the region in building effective
competition frameworks.
In the context of the 2007 ASEAN Economic Blueprint,
competition law legislation has been introduced over the
last decade in many ASEAN nations. The objective has been
to create a culture of rules-based competition for enhanced
regional economic performance. To achieve these objectives,
competition laws in ASEAN need to be effectively implemented
and enforced by well-functioning institutions with adequate
resources and skills. In order to fully benefit from well-
functioning markets, Southeast Asian countries need to
Fostering sound competition
ensure that laws and regulations are not unnecessarily and
inadvertently creating barriers to competition.
The OECD enjoys a unique position on policy regarding
economic competition, owing to its internationally
recognised standards and guidelines, long-standing
technical expertise, and competition roundtables which
help to advance dialogue on key and emerging issues.
The Organisation provides many avenues to encourage
advancement of sound competition through the Competition
Committee, the Global Forum on Competition, and the
OECD Korea Policy Centre workshops. These opportunities
promote peer-to-peer learning, international co-operation
between competition authorities, and facilitate the
dissemination of OECD standards and best practices. By
working with the OECD, countries of Southeast Asia can also
contribute to the OECD’s competition knowledge, as well as
the development and revision of standards and guidelines.
FUNCTIONINGMARKETS

In addition, the OECD has significantly increased its co-
operation on competition with the ASEAN Secretariat since
2015, with a particular focus on capacity building and policy
analysis. The OECD-Korea Policy Centre (KPC) has undertaken
18 capacity-building workshops, benefiting Southeast Asian
competition agencies and judges. The OECD has also shared
its experience by introducing pro-competitive reforms and the
Competition Assessment Toolkit in a number of workshops with
Indonesian officials, to include at APEC meetings held in Viet
Nam in 2017, amongst others.
In a broader sense, through OECD economic and investment
surveys, the Organisation has also provided in the last two years
policy analysis and recommendations on the competition laws
and policies of Cambodia, Vietnam, and the Philippines. These
country analyses have been performed in the context of OECD
Investment Policy Reviews. In Malaysia, a country Economic
Assessment was conducted, while Viet Nam is undertaking a
Peer Review of the Competition Laws.
Currently, the OECD/KPC is finalising a Guidebook on
the region’s competition laws that will serve as a tool to
understand the different legal regimes as well as foster mutual
understanding of each national competition regime, in addition
to regional co-operation initiatives.
The OECD is supporting the ASEAN Secretariat in developing a
Capacity Building Roadmap for 2017-2020. Together these will
help to identify and better target future OECD capacity-building
plans. The Organisation will continue to provide assistance
to ASEAN members in order to build domestic competition
capacity, and thereby laying the foundations to improve
regional enforcement co-operation and policy convergence.
www.oecd.org/competition
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Fostering sound competition

FUNCTIONINGMARKETS
Having the tools necessary to build and maintain a
strong financial system is a fundamental requirement for
Southeast Asian countries to compete and prosper at all
levels in the global market.
The OECD promotes efficient, open, stable and sound market-
oriented financial systems, based on high levels of transparency,
confidence and integrity. It monitors and surveys current
market developments and structural changes, publishing its key
findings in the biannual publication Financial Market Trends.
The Organisation also suggests reform measures related to
banking, securities and institutional investors, with a special
emphasis on insurance companies and private pension
schemes, as well as facilitates policy dialogue and knowledge
exchange on capital market reform, insurance, private pensions,
financial education and financial consumer protection. For
example, the OECD-ADBI Roundtable on Capital Market and
Financial Reform in Asia, established in 1999, meets annually
in Tokyo to bring together Asian and OECD country regulators,
policymakers, experts, practitioners and scholars, as well as
international organisations, to discuss the latest developments
in capital market reform in Asia. The Roundtable has examined
the development of Asian bond markets in addition to policy
frameworks for effective and efficient financial regulation in
Southeast Asia. In-depth and ongoing work includes the OECD
Project on Institutional Investors and Long-term Investment, which
aims to facilitate long-term investment (LTI) for institutional
investors in pension funds, insurance companies, and sovereign
wealth funds by addressing both potential regulatory obstacles
and market failures. The project has held events targeting the
SEA region and relies on close co-operation between OECD
economies and non-OECD economies, major investors and other
key stakeholders.
Developing a robust
financial system
In addition, the OECD seeks to enhance policy analysis and
dialogue on disaster risk financing strategies for natural and
man-made disasters and develop good practices where relevant.
Building on long-standing work in disaster risk management
and risk financing, the OECD published the Recommendation
on Disaster Risk Financing Strategies. This Recommendation
supports the development of effective strategies in managing
the financial impacts of disasters. In addition, it actively works
with the Asia-Pacific Economic Co-operation (APEC) Finance
Minister Initiative on disaster risk financing that seeks to
promote information exchange and good practices amongst
APEC economies, some of which are from Southeast Asia.
www.oecd.org/finance
Initial public offerings (IPOs) by companies from Southeast Asia
Amount of capital raised, 2016 USD, billions
Note: Based on the domicile country of the issuer. Over-the-counter (OTC)
transactions are excluded. Data are presented in 2016 USD adjusted by US CPI.
Philippines
USD,billions
0
10
20
30
40
50
60
70
1993-2000 2001-2008 2009-2016
Viet Nam
Thailand
Singapore
Indonesia
Malaysia

Infrastructure gaps in Southeast Asia hamper sustainable
economic and social development and present a major
challenge for deepening economic integration and
connectivity within the ASEAN Economic Community.
Closing these gaps through the implementation of
infrastructure initiatives is essential for Southeast Asia to
be competitive in regional and global markets.
The OECD Regional Policy Network (RPN) on Sustainable
Infrastructure collaborates closely with the ASEAN Secretariat
and ASEAN Member States, supporting the implementation of
the Master Plan for ASEAN Connectivity (MPAC) 2025. Highlights
of this co-operation include the ASEAN Principles for Public-
Private Partnership Frameworks. Based on these principles,
the OECD conducted a pilot review of the PPP framework in
the Philippines. In addition, supported by the UK’s Prosperity
Fund, the OECD developed a handbook on “Value for Money in
PPPs within Southeast Asia”, which was presented at the RPN
meeting in Bangkok in 2016.
The annual RPN meetings on Infrastructure and PPPs have
provided a unique opportunity to exchange experiences and
knowledge between OECD and ASEAN policy makers and experts.
The region’s achievements and challenges feed into the work of
Strengthening connectivity, capital investment
and public-private partnerships
the Network of Senior PPP and Infrastructure Officials, which
was established to ensure that PPPs and capital investment
projects bring value for money and that potential risks are
managed properly. The RPN’s current work in the region on how
to use transaction advisors effectively in private infrastructure
projects will add to this body of knowledge and support OECD
and partner countries that face similar challenges.
Going forward, the OECD is strongly committed to continue
this collaboration to improve the sustainable investment
environment of ASEAN Member States. Future co-operation
on sustainable infrastructure and PPPs may include the
assessment of the adequacy of infrastructure management
in ASEAN countries, assisted by the framework presented in
the OECD publication, Getting Infrastructure Right. The guide
lays out key “success factors” that lead to effective planning,
financing and delivery across the infrastructure spectrum,
including public-private partnerships.
www.oecd.org/governance
OECD
Southeast Asia
Regional Programme
The Regional Policy Network on
Sustainable Infrastructure works
to support the implementation
of the Master Plan for ASEAN
Connectivity 2025.
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In order to increase financial well-being, support inclusive
growth and support financial stability, improvements in
financial literacy and financial inclusion of individuals and
small businesses are crucial for Southeast Asia.
Southeast Asian countries are actively promoting financial
education as a powerful tool for economic growth, financial
stability and as a starting point for more inclusive societies.
Cambodia, Indonesia, Malaysia, Thailand and Viet Nam have
used OECD methodology to assess financial literacy and
financial inclusion in order to provide clear indications of the
challenges faced by consumers and the groups in most need
of support within a national strategy for financial education.
Indonesia will also participate in the Financial Literacy Option
within the OECD Programme for International Students
Assessment (PISA) in 2018, and has promoted the importance
of financial literacy at G20 level and within ASEAN and APEC,
where financial education policies have become a policy priority.
The OECD co-hosts regular seminars in Southeast Asia,
providing stakeholders in the region with the opportunity to
learn more about OECD policy tools and hear from high-level
policy makers, academics and practitioners about new and
innovative approaches designed to tackle low levels of financial
literacy and inclusion. Most recently, the OECD co- hosted a
high-level regional seminar on Empowering MSMEs through
Financial Literacy and Inclusion with the Indonesia Financial
Services Authority (OJK), in June 2016. A regional research paper
was subsequently published by the OECD entitled, Financial
Education for Micro, Small and Medium-Sized Enterprises in Asia,
to highlight the wide variety of financial education activities for
MSMEs in Asia, with a particular focus on Indonesia.
The MSMEs seminar in June 2016 was held back-to-back with
the first meeting of the ASEAN Working Committee on Financial
Inclusion on 30-31 May 2016, in addition to the 7th
OECD Asian
Roundtable on Financial Literacy and Financial Inclusion on
Improving financial literacy
and inclusion
2 June 2016. The next regional meeting and Asian Roundtable
will be held in Viet Nam in 2017.
The OECD formulates financial education recommendations
through the International Network on Financial Education
(OECD/INFE) and through its participation in the work of the
G20. Established in 2008, the OECD/INFE brings together public
experts from 270 public institutions and over 115 economies in
order to undertake analytical work and develop good practices.
Brunei, Cambodia, Indonesia, Malaysia, the Philippines,
Singapore and Thailand are members of the Network. Indonesia,
Malaysia, the Philippines and Thailand have hosted meetings
of the OECD/INFE and OECD Asian Roundtables on the Role of
Central Banks in Financial Literacy and Inclusion.
www.oecd.org/finance/oecd-financial-literacy-study-finds-many-
adults-struggle-with-money-matters.htm
www.oecd.org/daf/fin/financial-education/G20-OECD-INFE-
report-adult-financial-literacy-in-G20-countries.pdf
FUNCTIONINGMARKETS
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PUBLIC AND
CORPORATE
GOVERNANCE

PUBLIC AND CORPORATE GOVERNANCE . 39
GOVERNANCE
Good regulatory practice (GRP) is a cross-cutting theme for
ASEAN economic integration and regulatory coherence, as
well as for individual ASEAN member countries’structural
and rule-of-law reforms.
ASEAN countries recognise that the economic agenda must
be premised on productivity-driven growth, aided by good
regulatory processes. “Efficient, Effective, Coherent and
Responsive Regulations, and Good Regulatory Practice” has
in turn been recognised in the ASEAN Economic Community
(AEC) Blueprint 2025 as a key pillar for achieving “a Competitive,
Innovative, and Dynamic ASEAN”. This builds upon previous
declarations that underline the importance of GRP such as the
Putrajaya Joint Declaration on ASEAN Post-2015 Priorities
towards an ASEAN-Centric Civil Service by the ASEAN Heads of
Good regulatory practice
and regulatory reform
Civil Service in December 2015 and the Nay Pyi Taw Declaration
on the ASEAN Community’s Post-2015 Vision issued by the
Heads of State or Government in November 2014. Furthermore,
the OECD was included in the ASEAN 2025: Forging Ahead
Together vision which was approved at the Leaders’ Summit in
November 2015.
The OECD has a longstanding engagement with Southeast Asia
on regulatory reform, both regionally through APEC and ASEAN
and bilaterally with individual ASEAN member countries.
Highlights of this engagement include the APEC-OECD Co-
operative Initiative on Regulatory Reform that gave rise to the
2005 APEC-OECD Integrated Checklist on Regulatory Reform,
as well as the 2011 Review of Administrative Simplification in
Viet Nam and 2012 Regulatory Reform Review of Indonesia.
J Left to right: Faisal
Naru, OECD Secretariat,
Jayasena Jayasiri,
Secretary-General
of the Ministry for
International Trade and
Industry, Mark Steel,
Director of Ministry of
Business Innovation
and Employment of
New Zealand and
Dr Ernesto Pernia,
Secretary of Socio-
economic Planning of
the Philippines.

The Organisation has also been working bilaterally with various
ASEAN governments to strengthen their implementation of
good regulatory practice, including in the fields of Regulatory
Impact Analysis (RIA), administrative simplification and
burden reduction, as well as institutional arrangements for
assuring high quality regulation. For example, a comprehensive
regulatory reform review has also been carried out for Malaysia
producing an important tool, Implementing Good Regulatory
Practice in Malaysia (2015).
The OECD is engaged with ASEAN on increasing the capacity
of SMEs to cope with regulations. This work supports the goal
to “Enhance Policy and Regulatory Environment”, one of the
five Strategic Goals of the ASEAN Strategic Action Plan for SME
Development 2016-2025.
www.oecd.org/gov/regulatory-policy
www.oecd.org/gov/regulatory-policy/grpn.htm
OECD
Southeast Asia
Regional Programme
The Regional Policy Network for
Good Regulatory Practice (GRPN)
works with regional and OECD
partners to improve government
capacities for efficient and
effective regulations.
J Tan Sri Dr Ali Bin
Hamsa speaking at
the ASEAN-OECD
Good Regulatory
Practice Conference
2015 on Regulatory
Coherence for Regional
Connectivity and Global
Competitiveness, held on
9-12 March 2015 in Kuala
Lumpur, Malaysia
I 12th OECD-Asian
Senior Budget Officials
Annual Meeting,
Bangkok, Thailand, 15-16
December 2016.
Good regulatory practice and regulatory reform
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GOVERNANCE
Maintaining fiscal discipline, allocating resources where
they are needed most, and achieving greater efficiency in
government operations all have vital impacts on overall
national economic performance.
The OECD works on the full range of budgeting and public
financial management issues through reviews of country
budgeting systems and comparative analysis of specific aspects
of the budgeting system across countries. To this end, it also
maintains a comprehensive database of budgeting practices
across countries. The result of this work is published in the
OECD Journal on Budgeting.
The Organisation also convenes an annual meeting of Senior
Budget Officials from Asia– the Asian SBO. This meeting brings
together the budget directors and other senior officials from
the region to share policy experiences and discuss common
budgetary issues. The meeting is a unique opportunity for
dialogue and interaction among colleagues and is generously
hosted by the Thai Bureau of the Budget in Bangkok.
In addition, the OECD completed the Budgeting Practices in
Asia Survey which includes comprehensive information on the
budget institutions of Cambodia, Indonesia, Lao PDR, Malaysia,
Myanmar, the Philippines, Singapore, Thailand, Timor-Leste, and
Viet Nam. Furthermore, in Timor-Leste, the Organisation has
developed a Roadmap of Budgetary Governance Reform in 2017
on the basis of a comprehensive review of its budgeting system,
and the OECD continues to be engaged in extensive follow-up
work there.
www.oecd.org/gov/budgeting
www.oecd.org/gov/budgeting/oecd-asianseniorbudgetofficials
network.htm
www.oecd.org/gov/budgeting/oecd-asianseniorbudget
officialsnetwork.htm
www.oecd.org/gov/budgeting/oecdjournalonbudgeting.htm
Budgeting and
public expenditures
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Employing public procurement best practices and
strategies are central to achieving public sector efficiency
and advancing public policy objectives.
In 2015, the OECD Council adopted a Recommendation on
Public Procurement which advocates the strategic and holistic
practice in public procurement. It provides a 21st-century
reference for modernising the public procurement system
and can be applied across all levels of government and state-
owned enterprises. The Recommendation addresses the entire
procurement cycle whilst integrating public procurement with
other elements of strategic governance such as budgeting,
financial management and additional forms of service delivery.
The publication, Public Procurement for Innovation, which is
part of the OECD Public Governance Reviews series, is a useful
complement to the Recommendation instrument.
On this basis and depending on countries’ demands, the OECD
undertakes peer reviews of national and sector procurement
systems, and provides proposals for improvement. The
Organisation collects useful and reliable evidence across
OECD and non-OECD countries on the performance of public
procurement operations as well as the impact of procurement
on broader public policy objectives, such as sustainable green
growth, SME development, and innovation.
Public
procurement
The OECD also partners with several Southeast Asian countries
to support reforms in their public procurement systems and to
ensure long-term sustainable and inclusive growth, and trust
in government. Several Southeast Asian countries regularly
participate in meetings of the Working Party of Leading
Practitioners on Public Procurement, which brings together
senior procurement experts from OECD and G20 countries, in
addition to international organisation and the private sector
participants.
www.oecd.org/gov/ethics/public-procurement.htm
www.oecd.org/governance/procurement/toolbox
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GOVERNANCE
OECD analyses can help the public sector improve its
performance, thus ensuring better value for money and
contributing to national well-being.
The Observatory of Public Sector Innovation supports countries
in implementing innovative approaches to improving the
responsiveness and performance of their public sector.
The Observatory provides access to a database of innovations
from around the world to inspire innovators in other countries.
It connects innovators through an online platform for
knowledge-sharing and collaboration in the development of
innovations, and develops practical guidance on how to source,
develop, support, scale and diffuse innovations. Since 2016,
Indonesia participates in the Observatory’s National Contact
Points meetings. The Observatory is also exploring potential
engagement with non-Members in the Southeast Asian region
through its involvement in the OECD Network on Open and
Innovative Government.
The OECD partnered with the Government of Korea and the
Korea Policy Centre to organise the Global Forum: Government
3.0, the Asian Public Governance Forum on Public Innovation
and the OECD Network on Open and Innovative Government
in Southeast Asia, in order to bring together reformers from
the OECD and SEA to exchange best practices and policy
experiences on digital government and public sector innovation.
The OECD Public Governance Directorate is partnering with
the Asian Development Bank (ADB) on a new Southeast Asian
Government at a Glance initiative to better inform public sector
reform in the region and provide a platform for peer-to-peer
learning on public management practices and procedures
between participating countries.
Increasing performance
in the public sector
The Government at a Glance report, through a diverse set of
surveys, will provide actionable and comparative evidence
for decision-makers to have an overall view on the current
state of affairs across a spectrum of policy areas. As part of
this effort, the data collected will allow for the assessment of
public finance, strategic human resources management, digital
government performance and the impact of open government
data policies using the OECD OURdata Index.
The flagship report, Government at a Glance, last published in
2015, presents the results of various data collected in the region.
The latest edition is expected to be released in 2018.
www.oecd.org/gov
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Reforms that promote open and transparent governments,
and foster partnerships and networks with citizens and
businesses, benefit countries and regions alike.
The OECD’s open government activities in SEA are focused
on identifying and supporting countries’ efforts to promote
transparency, accountability, as well as public consultation
and engagement throughout the policy lifecycle (policy design,
implementation, evaluation and feedback). Given the wide
range of expertise in pursuing open government reforms across
the region, the OECD supports regional leaders in consolidating
the benefits of their reforms, as well as bringing countries
together to identify a shared understanding of the opportunities
presented by pursuing such initiatives.
In March 2015, the OECD launched the Network on Open and
Innovative Government in Southeast Asia; a second meeting
was held in September 2015, and a third in November 2016.
The Network, co-chaired by Korea and Indonesia, provides a
platform to discuss efforts in Southeast Asian countries to
implement open and innovative policies and to present relevant
experiences from OECD Member countries. Notably, the OECD
produced an Open Government Review of Myanmar in 2014 and
launched an Open Government Review of Indonesia in 2016. This
review included a capacity-building component, as well as a
chapter linking Indonesia’s open government reforms to its
implementation of the Sustainable Development Goals (SDGs).
In supporting open government and public sector reforms,
the OECD seeks to respond to the demands of citizens
and businesses for more transparency, accountability and
participation; modernise public administrations for better
services; foster sustainable and inclusive socio-economic
development; and provide access to good practices and
comparative data. To this end, the OECD conducts Open
Government Reviews, which provide countries with analysis
and actionable recommendations on how to design and
Promoting
open government
implement open government policies and engage with
stakeholders.
Through the Network, the OECD will continue to map open
and innovative policies and practices. The Organisation will
also continue to support countries’ implementation of the
recommendations outlined in the Open Government Reviews,
and build on the analysis contained in the Open Government:
Global Context and Way Forward. This report, published in
2016, collected data from over 50 countries, including in
Southeast Asia, to provide an overview of how countries are
implementing open government practices and the challenges
and opportunities they face.
www.oecd.org/gov
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GOVERNANCE
Integrity, transparency and accountability are essential to
developing trust in government for individuals, investors
and institutions. A new OECD Recommendation on Public
Integrity provides a vision and guidance for developing a
public integrity strategy.
Southeast Asian countries are paying increased attention to
enhancing their public integrity systems. The ADB/OECD Anti-
Corruption Initiative for Asia and the Pacific provides a forum
for peers from the region to meet regularly to discuss shared
integrity challenges as well as innovative and effective ways
to address them. The OECD has also initiated a programme
on Illicit Trade and Corruption with a special focus on the
Southeast Asia region. Together with the Asia-Pacific Economic
Co-operation (APEC), the OECD developed the Principles to
Prevent and Combat Trafficking in Persons-related Corruption.
The increasing importance of public integrity in this region
was also reflected in the high level participants at the 2017
OECD Global Anti-Corruption Integrity Forum, including
representatives from Indonesia, Malaysia, Thailand, Cambodia
and the Philippines.
Integrity Reviews of Thailand and Indonesia will be launched in
the second half of 2017. The OECD is already discussing options
to further strengthen co-operation with both countries on
integrity and anti-corruption, especially in the implementation
of the policy recommendations of the Integrity Reviews and in
assessing high-risk areas, including infrastructure and public
procurement. Preparations are underway for the next meeting
of the ADB/OECD Anti-Corruption Initiative for Asia and Pacific
in November 2017 in Seoul, hosted by the Anti-Corruption
Civil Rights Commission of Korea.
The OECD is currently conducting integrity reviews in Thailand
and Indonesia. Integrity reviews assess the functioning of a
country’s integrity system and provide tailored, actionable
proposals to support evidence-based and well-targeted reforms,
Enhancing public sector
integrity
using cross-country benchmarks. These reviews bring together
Thai and Indonesian officials with integrity experts from OECD
countries. Both countries are also invited to participate in the
meetings of the OECD Working Party of Senior Public Integrity
Officials (SPIO), which promotes the design and implementation
of integrity and anti-corruption policies that support good
governance. The insights and experiences of both countries
strengthen the evidence base
For, and support the development of, policy tools to implement
the new OECD Recommendation on Public Integrity, adopted in
January 2017.
www.oecd.org/gov/ethics/recommendation-public-integrity.htm
www.oecd.org/gov/ethics/latestdocuments
www.oecd.org/corruption/ethics/integrity-forum-2017.htm
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Corruption is a major obstacle to economic development
as it undermines good governance, sustainable and
inclusive development and fair business practices.
As the South Asian region’s economies grow, so does the risk
of transnational bribery. This is particularly the case regarding
major public infrastructure projects that are required to keep up
with rapid urbanisation, in addition to significant investments
in resource-based sectors, and the emergence of manufacturing
hubs. The OECD participates in a number of initiatives with
Southeast Asian countries to promote the OECD Anti-Bribery
Convention and support governments in implementing
international standards for combating foreign bribery. These
include bilateral and regional discussions on best practices for
establishing effective foreign bribery offences.
The Convention on Bribery of Foreign Public Officials in
International Business Transactions (the “Anti-Bribery
Convention”) is an international legally-binding instrument that
focuses on the supply of bribes by individual entrepreneurs and
companies to foreign public officials. The OECD Working Group
on Bribery, composed of the 43 parties to the Convention,
monitors its implementation through rigorous peer reviews. The
major emerging Southeast Asian economies, namely: Indonesia,
Malaysia, Singapore, Thailand and Viet Nam, are not yet parties
to this Convention. Indonesia, Malaysia and Thailand have
attended meetings of the OECD Working Group on Bribery as
invitees. Malaysia and Thailand have foreign bribery offences,
and Thailand has established corporate liability for offenders.
The OECD looks forward to increasing its collaboration with
economies in the region. The Organisation encourages countries
to take their engagement to the next level and actively work
towards membership in the OECD Working Group on Bribery
and acceding to the OECD Anti- Bribery Convention. This, in
addition to their continuing participation in the ADB/OECD
Anti-Corruption Initiative for Asia-Pacific.
Fighting transnational
corruption
The ADB/OECD Anti-Corruption Initiative for Asia and the
Pacific supports members’ national and multilateral efforts
to reduce corruption. 31 economies in the Asia-Pacific region
have expressed their commitment to fight corruption by
endorsing an anti-corruption action plan within the framework
of the Initiative. In 2017, the ADB/OECD Initiative published
Mutual Legal Assistance in Asia and the Pacific: Experiences in 31
Jurisdictions, which outlines common barriers to mutual legal
assistance among the 31 member jurisdictions of the Initiative,
and describes best practices used to overcome these barriers.
www.oecd.org/site/adboecdanti-corruptioninitiative
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GOVERNANCE
The rapidly increasing integration of Southeast Asian
countries into the global economy highlights the importance
of strengthening co-operation between Southeast Asia and
the OECD on international tax issues.
In recent years there has been growing recognition of the role that
the tax system plays in state-building and as a sustainable source
of domestic resources for development. From increasing global tax
transparency to addressing gaps in the international tax rules that
facilitate Base Erosion and Profit Shifting (BEPS) by multinational
enterprises, the OECD has been working hand-in-hand with
economies across Southeast Asia to develop and monitor
implementation of global solutions to these common tax issues.
The OECD-hosted Global Forum on Transparency and
Exchange of Information for Tax Purposes is responsible for
monitoring the implementation of international standards on
tax transparency and now has over 140 members including
more than 20 from the Asia-Pacific region. In addition to
providing bilateral assistance, the Global Forum Secretariat
is working closely with the Asian Development Bank (ADB) to
deliver a series of training events to ensure that all jurisdictions
can benefit to tackle tax evasion effectively.
Recent efforts to promote participation in the development
and implementation of international tax rules to curtail BEPS
practices has already seen 15 jurisdictions from Asia-Pacific
join the Inclusive Framework on BEPS. With over 100 members,
all participating on an equal footing, the Inclusive Framework
is working to support countries to implement the measures
agreed to tackle BEPS, as well as continuing its technical work to
ensure BEPS challenges are addressed.
Ensuring policy-makers have the right tools is critical to
building stronger tax systems. In 2015, the OECD’s Global
Revenue Statistics Programme was extended to Asia, and the
3rd edition (2017) covers seven Asian economies, providing
Improving tax transparency
and compliance
standardised, comparable revenue data that allows comparison
of key tax revenue indicators over time and between countries.
Practical capacity building assistance is also available. As well
as dedicated assistance through bilateral country programmes,
the OECD Global Relations and Development Programme on
Tax Matters holds more than 20 tax seminars and events each
year for Southeast Asian economies. Meanwhile, the OECD-
UNDP Tax Inspectors without Borders initiative works to deploy
experts on-demand to support tax audit teams to work on real
cases involving international tax issues.
A regionally-targeted approach to ensure effective engagement
in the global tax dialogue by jurisdictions from Southeast Asia
will continue in 2017 and 2018, supported by a deepening of
co-operation with regional organisations such as the ADB,
APEC, SGATAR (Study Group for Asian Tax Administration and
Research), and UNESCAP (United Nations Economic and Social
Commission for Asia and the Pacific).
www.oecd.org/tax
L Asia-Pacific Regional meeting of the Inclusive Framework on BEPS, Manila,
The Philippines, 29 Nov 1– Dec 2016
OECD
Southeast Asia
Regional Programme
The Regional Policy Network
forTax works to strengthen
co-operation on tax policy and
administration in the region and
between OECD and Southeast
Asian countries.

Good corporate governance is central to developing robust
and healthy capital markets and essential to fostering
sustained growth in Southeast Asia.
Members of ASEAN have embraced transparent corporate
governance in their activities under the ASEAN Capital Market
Forum to achieve effective regional capital market integration.
The ASEAN Corporate Governance Scorecard provides country
reports and assessments of the top listed companies, based on
the G20/OECD Principles of Corporate Governance. Given the
growing importance of the region to the world economy, efforts
to reform governance practices are of global relevance. The
OECD has engaged actively with the region for over a decade.
The Principles are intended to help countries evaluate and
improve their legal, institutional and regulatory framework for
corporate governance and to provide guidance and suggestions
for stock exchanges, investors, corporations and other parties
involved in the development of good corporate governance. They
are recognised by the Financial Stability Board (FSB) as one of
the key standards for international financial stability, and form
the basis for the corporate governance component of the World
Bank Reports on the Observance of Standards and Codes
Raising the bar
on corporate governance
The OECD Guidelines on Corporate Governance of State-
Owned Enterprises, developed based on the Principles, take
as a starting point that state-owned enterprises (SOEs) should
be as accountable to the general public as private enterprises
should be to their shareholders. They help governments organise
their ownership and regulatory roles, while ensuring efficient
and transparent governance of individual SOEs. Well-governed
SOEs can in turn help boost national competitiveness and
limit the risk of fiscal drainage. A number of countries in Asia
have undertaken SOE reforms that are consistent with these
recommendations, and the Philippines have directly cited the
OECD instrument as a source of inspiration.
Both the Principles and the Guidelines were updated in 2015,
taking into account developments in the corporate sector and
capital markets. Indonesia and Singapore, along with other FSB
members, participated in the review as Associates, and thereby
on an equal footing with OECD Members, so as to ensure that
the updated standards truly reflect an international perspective;
Malaysia participated in the Committee as an Invitee.
www.oecd.org/corporate
I OECD – Southeast Asia Corporate Governance Initiatives in Phnom Penh in April
2017. Left to right: Masato Kanda, Deputy Commissioner for International Affairs,
Financial Services Agency, Japan and Chairman, OECD Corporate Governance
Committee; Karin Zarifi, Advisor, Securities and Exchange Commission, Thailand;
Fianna Jurdant Senior Policy Analyst, Corporate Affairs Division- OECD; Nadia
Zainuddin, Assistant General Manager, Chief Regulatory Office, Securities
Commission, Malaysia.

EMPLOYMENT
AND SOCIAL
DEVELOPMENTEMPLOYMENT AND SOCIAL DEVELOPMENT . 49

SOCIETY
Over the past ten years economic
growth in Asia has contributed to
a reduction in poverty and fertility
rates; greater prosperity has also
contributed to gains in life expectancy.
Many workers in Southeast Asia are still
engaged in informal employment, frequently for long hours,
without reliable income and social protections. Meeting citizens’
growing demand for social support, extending the coverage
of social protection benefits, and improving job quality while
closing gender pay gaps, will be among the challenges facing the
region in the future.
The 2017 OECD report A Decade of Social Protection Development
in Selected Asian Countries considers these challenges, providing
policy examples from countries to illustrate good practice,
including in Bangladesh, Indonesia, Japan, Korea, Malaysia,
Pakistan, Singapore and Viet Nam. A new issue of the OECD
Society at a Glance Asia/Pacific will be released in 2018.
The upcoming OECD Policy Insight on Strengthening Women’s
Entrepreneurship in ASEAN includes an account of recent trends
in labour market gaps between men and women in ASEAN
countries. It discusses the progress achieved so far towards
gender parity in education and provides an analysis of the
remaining challenges to reduce outstanding gaps in a wide
range of labour market outcomes, with a particular focus on
women entrepreneurship.
http://oe.cd/decade-social-protection-asia
Seeking best practices
of social and health policies
PENSIONS
Many Southeast Asian pensions
systems are ill-prepared for the rapid
ageing of their populations that will
occur over the next two decades.
Pensions are a major policy issue in
Southeast Asian and OECD economies
alike, with low coverage being a particular issue for the former.
This low coverage combined with rapidly ageing populations
brings with it higher poverty risks for future generations.
The OECD also analyses retirement income systems around
the world, providing a reference for pension comparison across
the OECD and the Asia-Pacific region. The report Pensions at a
Glance 2015 contains a comprehensive list of pension policy
indicators that look at the design of pension systems, future
pension entitlements for men and women at different earning
levels, the financing of retirement-income systems as a whole,
the demographic and economic context in which retirement-
income systems operate, private pensions and public-pension
reserve funds. The next edition of the report is due to be
published in late 2017, and the next Asia-specific report in 2018.
www.oecd.org/els/public-pensions

HEALTH
As the global financial and economic
crisis has forced countries to seek
ways to rein in public spending,
health systems need to increase their
efficiency and deliver better value for
money.
The OECD helps Southeast Asian
economies measure progress towards attaining universal health
coverage and monitor health system performance by advising
on the implementation of global standards to track health
expenditure and by helping them collect indicators on health
status, healthcare resources and quality of care.
The report Health at a Glance: Asia/Pacific 2016 presents the
latest comparable data and trends on key aspects of health and
health systems in selected Asia/Pacific countries. The indicators
provide an overview of health status, determinants of health,
healthcare resources and utilisation, health expenditure and
financing, and quality of care in the region. As countries strive
to achieve universal health coverage, these indicators help
measure their progress.
Through the OECD Korea Policy Centre, experts and
policymakers in the region share policy experiences, including
on policies to improve health care quality. The OECD also helps
countries improve value for money by designing pharmaceutical
policies and methods for rewarding providers for delivering
high-quality and efficient care. Collaborative OECD and WHO
work has shown that investing in preventive care aimed at
effectively tackling the main risk factors, such as obesity and
harmful alcohol consumption, is a high cost-effective strategy.
www.oecd.org/health
SOCIALDEVELOPMENT
EMPLOYMENT AND SOCIAL DEVELOPMENT . 51
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Gender inequality negatively affects development
outcomes, including in Southeast Asia. The OECD is
assisting countries in the region by providing them with
comprehensive data to inform and support their gender
equality policy initiatives.
The Social Institutions and Gender Index (SIGI) measures
gender equality by looking at social institutions that hamper
women’s participation in society and thus complements and
improves existing measures that very often only measure
outcomes of gender inequality.
The SIGI database provides in-depth country profiles on over
160 countries spanning all global regions. More recently,
regional editions have been issued, including one on East
Asia and the Pacific which was launched in 2016. The regional
report on East Asia and Pacific covers several Southeast Asian
countries including: Cambodia, Indonesia, Lao PDR, Malaysia,
Tackling gender
inequality
Myanmar, the Philippines, Singapore, Thailand and Viet Nam.
The publication captures key results on women’s discrimination
across five areas: decision-making within the family, son
preference, secure access to land and assets, civil liberties, and
violence against women.
Going forward the OECD Development Centre will continue to
measure discriminatory social norms in Southeast Asia and
beyond, and will increasingly using these results for informed
policy dialogues with national and regional stakeholders.
The next edition of the SIGI will be launched in 2018 and will
continue to draw on collaboration with countries and regional
stakeholders from Southeast Asia.
www.oecd.org/dev/development-gender/
theoecdsocialinstitutionsandgenderindex.htm
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OECD
Southeast Asia
Regional Programme
The OECD is working
with regional partners to
improve women’s economic
development through the OECD
Southeast Asia Gender Initiative.

Active with Southeast Asia

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