Following the global financial crisis, the magnitude and volatility of capital flows to emerging market economies, including ASEAN, have increased significantly. Hence, safeguard measures have been part of the policy toolkits in many of these countries to help maintain economic and financial stability. This paper is a stock-taking exercise of safeguard measures that have been implemented by ASEAN members since the Asian Financial Crisis (AFC). The paper also identifies views and practices of ASEAN members, which could be used as a “regional reference” for discussions in international fora, where international financial institutions have come up with their own views on what constitutes safeguard measures and circumstances that warrant their uses.
This paper is a joint effort by members of the ASEAN Working Committee on Capital Account Liberalisation.