Asean finance ministers are set to sign the eighth protocol at the upcoming meeting in Thailand, sealing a pact that will let indigenous asset management companies in one country hold entire stakes in firms operating the same business in other countries in the region.
The move aims to liberalise the fund business and deepen financial integration in the trade bloc, said Nadhavudh Dhamasiri, executive director of the Fiscal Policy Office's Bureau of International Economic Policy.
Thailand requires that at least a 50% stake in asset management companies be held by Thais.
The protocol is expected to be signed at the 23rd Asean Finance Ministers' Meeting (AFMM) and the fifth Asean Finance Ministers' and Central Bank Governors' Meeting, scheduled for April 3 to 5 in Chiang Rai province.
The Qualified Asean Bank (QAB) classification between Thailand and Malaysia will be another issue under the new protocol, Mr Nadhavudh said.
The Bank of Thailand signed a heads of agreement on a reciprocal bilateral arrangement regarding QAB with Bank Negara Malaysia in March 2016. The bilateral arrangement is part of an umbrella agreement for the 10-member bloc called the Asean Banking Integration Framework, which provides greater access for indigenous Asean banks to other members' banking sectors, as well as operational flexibility on a reciprocal basis.
With the QAB framework, indigenous banks that have gained QAB status will be permitted to carry out banking operations within that host country's borders and receive the same treatment as local banks.
The meetings' three priorities are connectivity, sustainability and resilience.
Mr Nadhavudh said cross-border payment in terms of both consumer and corporate levels is the meeting's focus, while an Asean standard for QR code payment will be implemented in accordance with priorities on connectivity.
Cybersecurity, particularly for digital assets, will be the central resilience theme, while Cambodia, Laos, Myanmar and Vietnam, which have financial inclusion problems, will also be highlighted under the theme.
The meeting will exchange experience related to digital assets, as Thailand appears to be the first Asean country with a law governing the issue.
The Asean Infrastructure Fund, with funding of US$485 million, will also be discussed at the AFMM.
Pisit Puapan, executive director of the Fiscal Policy Office's macroeconomic policy, said Asean countries have played an important role in investment in Thailand, accounting for 16.5% of foreign direct investment.