​In February 2019, the ASEAN Working Committee on Capital Account Liberalisation published the paper on Capital Account Safeguard Measures in the ASEAN Context (CAL Paper). The paper identified ASEAN’s views and the different approaches and safeguard measures used in dealing with capital flows. It also served as platform for our engagement with third party institutions. Such a collective voice as a region as well as the consistent messages highlighted by our Governors at numerous events and on many occasions have gained traction, especially from major international financial institutions (IFIs) such as the International Monetary Fund (IMF) and the Bank for International Settlements (BIS).

This policy note is developed to serve the following objectives: (1) articulate ASEAN authorities’ thoughts on the formulation of macroeconomic, financial, and capital flow measures as warranted by the circumstances to support price and financial stability; (2) supplement the IMF’s work on the integrated policy framework (IPF) which will provide crucial inputs to the IMF’s review of its Institutional View on Liberalization and Management of Capital Flows (IV) in 2021. This note could also provide insights and guidance for the BIS Asian Consultative Council’s work on IPFs in emerging Asia; and (3) provide updates on the actions taken by ASEAN authorities after the release of the CAL Paper in 2019, especially in the face of new challenges including the COVID-19 pandemic.

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