Overview

The start of the current activities for the establishment of an integrated regional financial system can be said to have started in 1997 when the finance ministers from the Association of Southeast Asian Nations (ASEAN) member countries agreed on the ASEAN Cooperation in Finance. Signed in Phuket, Thailand, on 1 March 1997, it is the consensus view that this agreement can take ASEAN to the next level of development, especially in terms of financial cooperation, the free movement of capital, and enhancing trade and investment.[1]

Unfortunately, the agreement could not prevent the financial crisis that hit the Asian region in July 1997, less than six months after the agreement was agreed upon. To make things worse, the crisis hit most of ASEAN countries, especially Indonesia, Thailand, Malaysia, Laos, and the Philippines. Other ASEAN countries such as Singapore, Brunei Darussalam, and Vietnam were less affected, although all suffered from the loss of demand and confidence throughout the region.