Yes, says Wick Veloso

I do believe a single currency for Southeast Asia will prove to be beneficial for the region. I believe that over the long term a single currency might be an enticing prospect for ASEAN [Association of Southeast Asian Nations]. For the time being, however, this adoption remains unrealistic. Let me explain.

For example, unlike the European Union, ASEAN is a much more diverse group, comprising individual economies of vastly different sizes and levels of development. Take Singapore with its highly developed service sector and extremely high per capita income, and compare it with Indonesia, a sprawling archipelago where most of the population

still resides in the countryside.

A single currency, as in Europe, works best if there is a relatively homogenous economic structure and comparable levels of development among participants.

For all its strides in recent decades, ASEAN is still many years away from achieving the degree of homogenisation needed for the successful implementation of a single currency. But if it ever gets to that stage, a single currency is sure to be a good development.

Jose Arnulfo “Wick” Veloso, president and the first Filipino CEO of HSBC Philippines in 140 years of operations in the Philippines, is actively involved in a number of industry associations that promote capital markets development in the country.

No, says Mariels Winhoffer

The primary goal of the Association of Southeast Asian Nations (ASEAN) Economic Community is economic integration. This requires regional cooperation, promotes institutional and person-to-person collaboration and networking, and establishes standards and policies that are foundational to the members.

ASEAN integration may present the opportunity and benefits of monetary integration which drives lower transaction costs, reduction of exchange risks, and price stabilisation—all while establishing its currency as one of the major currencies in the world and enhance ASEAN’s role as a global player.

Despite the benefits, there are major hurdles to overcome before the single currency can be achieved. Sharing a single currency requires the countries to follow very similar business cycles. Other important criteria are macroeconomic stability and a similar level of economic development.

As the crisis has shown in the euro, the maturity, macroeconomic stability, and economic development amongst the ASEAN members vary. The gap creates major risks and highly creates dependencies on the wealthy and strong countries to bail the weak ones.

Mariels Almeda Winhoffer, vice president for Global Business Partners, Asia Pacific, is an exemplary woman leader, recognised so often for her achievements, like being one of the 50 Outstanding Asian Americans in Business by the Asian American Business Development.