Six major stock exchanges in ASEAN are planning to connect trading and develop a standardised environmental, social, and governance (ESG) curriculum for listed companies in the region. These include Malaysia, Indonesia, the Philippines, Singapore, Thailand, and Vietnam. An ASEAN ESG Award to recognise exemplary ESG practices by listed organisations is also under consideration.
Bursa Malaysia hosted the 37th ASEAN Exchanges CEO Meeting in Penang, Malaysia, in early July, gathering leaders from the stock exchanges of Malaysia, Indonesia, the Philippines, Singapore, Thailand, Việt Nam, Cambodia, and Laos. The conference focused on initiatives to enhance regional securities competitiveness by fostering a sustainable ecosystem and improving regional market connectivity.
Bursa Malaysia announced that ASEAN stock exchanges agreed to jointly develop depository receipt products at each exchange, aiming to expand investor access to securities from neighboring countries. Depository receipts are certificates representing shares of a foreign company traded on the domestic stock exchange. This initiative follows the successful depository receipt connectivity agreement between the Singapore Exchange (SGX) and the Stock Exchange of Thailand (SET) last year.
Bursa Malaysia also noted progress in information sharing among ASEAN exchanges and the adoption of a common set of ESG indices. Conference attendees agreed to pursue four proof-of-concept projects over the next three years, including establishing ASEAN data infrastructure to harmonise data structures and standards, forming an overall ASEAN perspective, and creating a unified operating model.
ASEAN stock exchanges also plan to develop a standardised ASEAN ESG curriculum to support listed organisations in achieving effective, automated, and scalable ESG assurance processes. Other initiatives include transition financing for corporate suppliers, with banks offering preferential loan programmes linked to environmental disclosures and decarbonisation commitments. The proposed ASEAN ESG Award aims to enhance the corporate standing of regional listed organisations on the international stage.
