Executive Summary :
Since the 1997 Asian financial crisis, some SEACEN countries have been unable to achieve pre-crisis levels of investments. Many reasons were cited by the literature and these include a shift in investors’ perceptions, weaker exchange rates which make prices of imported investment goods more expensive, overinvestment in various sectors of the economy, unsettled political and security conditions, weak financial systems and governance systems, implicit state guarantees and the ‘hollowing out’ effect where excessive outward foreign investment has reduced domestic investment. Read more

Executive Summary :
The SEACEN economies have liberalised their external accounts and domestic financial markets. The current account is fully convertible in all the countries in the SEACEN region while the capital account is by and large fully convertible in the majority of these countries. Since early 1990s, net capital flow to the SEACEN countries increased steadily until 1996 due to the massive increase in total capital inflows. However, after the financial crisis of 1997, total capital outflows have outweighed total capital inflows resulting in a negative net capital flow. Read more

Executive Summary :
The development of financial markets cannot be isolated from the influence of technology. Technology, especially information technology (IT), plays a dual role in the financial field - as the engine of development of financial products and as the engine of financial institution operations. The operations of financial institutions in SEACEN countries involving the use of IT take on the second role. The more advanced SEACEN countries can actually compete with the world leaders in IT implementation by financial institutions. However, in terms of the second role of IT, SEACEN countries are still following the lead of the developed countries. Read more

Executive Summary :
The present economic environment requires central banks to adapt in order to perform their roles properly. With globalisation, they must be able anticipate threats to financial and economic stability. The required competencies of central banks are vastly different from those a decade ago, requiring different ways of managing human resources. As monetary authorities, central banks are required to anticipate the undesirable changes in economic situations. Failing so could lead to disastrous results. To be able to cope with this, and to respond with proper policies, it is imperative for central banks to have a competent workforce. Read more