Following the 1997 Asia Financial Crisis, economic and financial resilience has been a priority for ASEAN governments. In 2025, ASEAN member states continue to take steps to strengthen financial resilience via domestic reforms and regional cross-border frameworks. Indonesia extended its exports earnings lock-up period from 3 to 12 months, offering a 20% income tax exemption for interest on locked-up funds or rupiah credit collateral incentives. Thailand plans to ease tax rules for remitted income, even if the income was not earned in the same year. These measures aim to provide foreign exchange intervention tools and encourage capital repatriation.
ASEAN is also improving regional cooperation to mitigate the impacts of increased volatility in global markets. Bank Negara Malaysia, Bank Indonesia, and the Bank of Thailand recently launched the harmonized Local Currency Transaction Framework Operational Guidelines to enhance the utility of domestic currencies for cross border commercial transactions. The Government of Singapore is creating a new entity to consolidate the national payments systems. This growing trend to streamline regional connectivity could not only enhance resilience and boosts local currency use in addition to US Dollars, but also increase competitiveness in the region.
