In this regard, ASEAN members have agreed to prioritise efforts to liberalise the cross-border supply of Marine, Aviation and Goods in International Transit (MAT) insurance and to support the establishment of an ASEAN Disaster Risk Financing and Insurance (DRFI) mechanism. Progress in these areas will enable ASEAN members to increase capacity for such risks which are growing in scale and complexity, and achieve broader diversification of risks across the region, leading to lower costs of insurance. It will also enhance the protection of ASEAN communities and economies against increasing exposures to catastrophes. Significant progress has also been made in promoting freer flow of capital and greater connectivity between the ASEAN capital markets through the various initiatives and measures by the ASEAN Capital Markets Forum. Market participants can look forward to more seamless cross-border investments with reduced costs and greater access to ASEAN investments. Financial integration initiatives are also focusing on harmonising further the operating environments for payment systems within ASEAN countries. A key outcome is to create an efficient, reliable and secure payment and settlement system which is able to operate smoothly across ASEAN. Consumer transactions such as cash withdrawals and payments for goods and services will be further simplified, contributing towards the growth of retail businesses in ASEAN economies. The development of more convenient and cost effective retail payment systems can also help realise the full potential for e-commerce in ASEAN. Efforts are also underway to promote the use of ASEAN currencies for trade settlement.

In this respect, the implementation of robust and consistent group-wide risk management, and a strong risk culture, is critical to mitigate risks of group contagion. Another critical element is the investment in talent development – both in industry and in the regulatory community – to provide a strong pipeline of skilled individuals required for the management of a more integrated financial sector. Sufficient resources and attention is needed to develop and implement strategies to attract and retain the right talent. The demand for talent particularly in the area of risk management and compliance continues to rise in the aftermath of the global financial crisis as financial institutions adjust to implement regulatory reform measures. Similarly, training and development programmes must be continuously enhanced to ensure that skill sets within the financial institution are kept current and relevant. Regional training institutions such as the Asian Institute of Chartered Bankers and the Asian Banking School and the South East Asian Central Banks Research and Training Centre, or SEACEN, amongst others, will play an essential role in meeting the demand for new talent with the necessary skill sets and experience. Concluding remarks The success of financial integration in ASEAN will be critical to support the on-going transformation of ASEAN economies in the coming decades. No doubt there are risks, challenges and setbacks even. But benefits and risks are two sides of the same coin. We should be confident enough, ASEAN is more than 40 years old now, as we chart our progress towards a more integrated economy as a group.