Southeast Asia Public Management, Financial Sector, and Trade Policy Facility

Finance / Finance sector development - Inclusive finance - Infrastructure finance and investment funds - Insurance and contractual savings

Industry and trade / Industry and trade sector development - Small and medium enterprise development

Public sector management / Decentralization - Public administration - Public expenditure and fiscal management

Sound macroeconomic management and progressive reforms have played a pivotal role in Southeast Asia''s economic performance. The banking system was restructured, with more tightened financial regulations. Local currency bond markets have been deepened to reduce country exposure to exchange rate risks and capital flow volatility. Fiscal policy has been more prudent and targeted at achieving the medium- to long-term national development goals that are aligned with the Sustainable Development Goals. Industrial and trade policies have successfully established globally competitive economic clusters by fostering international trade and foreign investment and improving ease of doing business. Governments continue to tackle corruption and improve governance and institution by adopting international standards and practices.

While sound economic fundamentals and prudent macroeconomic policy will continue to uphold an optimistic outlook, Southeast Asia''s continued growth prospect is not preordained. Policy reforms need to be further strengthened to address evolving development challenges and build resilience against emerging uncertainties. These challenges include: (i) deepening capital markets and financial inclusion; (ii) strengthening public finance management; and (iii) expanding trade and competitiveness.

The TA facility is aligned with the operational priorities of the Strategy 2030 in terms of strengthening governance and institutional capacity (operational priority 6) and fostering regional cooperation and integration (operational priority 7). It will directly contribute to the Southeast Asian DMCs'' Sustainable Development Goals (SDGs). It catalyzes resources and synergies for responding to the DMCs'' emerging and evolving policy and reform challenges through policy advisory services, knowledge management support, and capacity building to put forward the key reform agendas in three areas: (i) capital markets and financial inclusion; (ii) public finance and management; and (iii) trade and competitiveness.

International: 140 person-months

National: 250 person-months