Bond Pricing Agency Malaysia (BPAM) recently announced the launch of the new ASEAN3 Government Bond Indices (A3GBI), created in partnership with Indonesia Bond Pricing Agency (IBPA) and The Thai Bond Market Association (ThaiBMA). This represents the first time in the history of ASEAN that such collaboration has taken place.
The launch of the A3GBI at the Ritz-Carlton Hotel in Kuala Lumpur was officiated by En. Kamaruddin Hashim, Executive Director, Market & Corporate Supervision, Securities Commission Malaysia. Representing IBPA was Mr. Wahyu Trenggono, Director, and Dr. Kulkunya Prayarach, Head of Bond Pricing and Product Development Department, attended on behalf of ThaiBMA.
Over the past decade, local currency bond markets in the Association of Southeast Asian Nations (ASEAN) have been growing significantly. As at the end of 2017, the combined market size in dollar terms reached US$1.229 trillion from a mere US$569.01 billion in 2006.
With this background, the need for reliable and sophisticated data sets to measure and track market performance is becoming really important. This environment formed a perfect setting for cooperation between the bond pricing providers in the ASEAN region. The A3GBI is designed to track the performance of local-currency-denominated government bonds in Ringgit, Rupiah, and Baht.
In his address, the Chief Executive Officer of BPAM, Meor Amri Meor Ayob said, “The A3GBI is a ground breaking product. This is something never done before, and we at BPAM are proud to represent Malaysia for this historic project.
“The experience of building the A3GBI was a valuable learning opportunity for all three countries to develop their bond data and analytical capabilities. It is BPAM’s intention to continue to be a leader in the region and the A3GBI marks the first step in our ambition to build more cross-border products with our ASEAN neighbours.”