# Value-Up Arrives in ASEAN: Six Markets Competing to Narrow the Gap

- Link: https://www.thailand-business-news.com/set/334172-value-up-comes-to-asean-how-six-markets-are-racing-to-close-the-discount-set-news
- Published: 2026-10-17T05:09:00+07:00
- Author: SET News

**ASEAN is adapting Japan and Korea’s corporate value-up models to improve governance,
disclosure, and investor participation. Countries like Singapore, Malaysia, Thailand,
Indonesia, Philippines, and Vietnam are implementing various value-up programs. 
The goals are similar: better shareholder returns, governance, and investability.
Companies can enhance visibility and access to capital by improving capital allocation,
shareholder returns, and investor engagement. ASEAN’s value-up agenda is progressing
towards more structured expectations and greater regional alignment, enhancing the
region’s capital markets’ integration.**

---

 ASEAN’s value-up agenda is evolving from market-specific reforms into a broader
push to improve corporate value, governance and investor participation. Inspired
by Japan’s 2023 reforms and Korea’s 2024 Corporate Value-Up Program, the region 
is adapting the model to local priorities. Singapore has introduced its Equities
Market Review and S$30 million Value Unlock programme; Malaysia launched MY Value
Up Programme for 88 large listed companies; and Thailand has linked value-creation
initiatives with domestic investment incentives. Indonesia is pursuing governance
and market-structure reforms, the Philippines is emphasising investor engagement,
while Vietnam remains focused on strengthening market quality and infrastructure.

ADVERTISEMENT

Despite different approaches, the objectives are similar: better capital allocation
and shareholder returns, stronger governance and disclosure, and greater investability.
These priorities address persistent constraints including concentrated ownership,
limited free float, uneven institutional participation and gaps in research coverage.
For companies, stronger capital allocation, shareholder-return policies and investor
engagement can improve market visibility and access to institutional and international
capital.

Implementation will determine whether these programmes deliver lasting value. Voluntary
frameworks risk superficial compliance, while ownership, free-float and liquidity
constraints require broader structural change. As ASEAN moves towards more structured
expectations and greater regional alignment under initiatives such as the ACMF Action
Plan 2026-2030, companies that improve capital efficiency, transparency and investor
engagement early should be better positioned as regional capital markets become 
more integrated.

## Background: Where Value-Up Came From and Why It Spread

### Japan’s Template

The [Tokyo Stock Exchange (TSE)’s Value-Up](https://www.jpx.co.jp/english/equities/follow-up/02.html)
initiative took shape in March 2023, when the TSE asked all Prime and Standard Market
companies to assess their cost of capital and profitability, identify areas for 
improvement, and disclose plans to strengthen capital efficiency and market valuation.
The TSE subsequently began publishing [a monthly list of companies](https://www.jpx.co.jp/english/equities/follow-up/02.html)
that had disclosed their responses, adding market visibility and reputational pressure
to an otherwise principles-based framework.

The initiative coincided with a marked re-rating of Japanese equities. By 10 November
2023, the TOPIX had risen [24%](https://www.goldmansachs.com/insights/articles/japans-stock-market-is-forecast-to-have-a-transformational-year-in-2024)
for the year. Foreign investors recorded ten consecutive weeks of net buying between
April and June, with purchases of cash equities and futures totalling [¥7.9 trillion](https://www.goldmansachs.com/insights/articles/japans-stock-market-is-forecast-to-have-a-transformational-year-in-2024).
At the company level, the share of [Prime Market companies](https://www.jpx.co.jp/english/equities/follow-up/b5b4pj000004yqcc-att/sjcobq0000024jxu.pdf)
trading below book value fell from 50% in July 2022 to 44% in July 2025, while those
recording return on equity (ROE) below 8% declined from 47% to 43%. While broader
market and macroeconomic factors also contributed, these shifts coincided with greater
scrutiny of capital efficiency, governance and shareholder returns.

### South Korea’s Iteration

Korea followed in February 2024 with its [Corporate Value-Up Program](https://www.fsc.go.kr/eng/pr010101/81778),
adapting elements of Japan’s approach to address the longstanding “[Korea discount](https://www.fsc.go.kr/eng/po110101/82795?curPage&srchBeginDt&srchCtgry&srchEndDt&srchKey&srchText)“.
The programme encourages listed companies to voluntarily disclose plans covering
capital efficiency and shareholder returns, supported by a [Korea Value-Up Index](https://engkind.krx.co.kr/main.do?method=loadInitPage&scrnmode=1),
related ETFs, tax incentives and [broader governance reforms](https://www.fsc.go.kr/eng/po110101/82795).

In 2025, the [KOSPI](https://docs.publicnow.com/viewDoc?filename=37151%5CEXT%5C53DC4D4985A7A7DBFEA4C3B8EA1F1B3AAE9DD9AF_6AA3DF655CCE7D01816D979087DE23F598C755DB.PDF)
rose 75.6%, while the Korea Value-Up Index gained 89.4%. Cash dividends reached 
KRW50.9 trillion, up 11.1% year on year, while treasury-share cancellations rose
to KRW21.4 trillion. Net assets in Value-Up ETFs reached KRW1.3 trillion by year-
end, up 162.5% from their inception. Corporate participation accelerated further
in 2026: [full disclosures](https://global.krx.co.kr/contents/GLB/02/0203/0203000000/GLB0203000000.jsp#ab8758eced0475769e200e7e309baf44=1&ab8758eced0475769e200e7e309baf77=1&view=20883)
rose from 179 in February to 582 in March and 747 by July, with the March increase
following [tax changes](https://www.alliancebernstein.com/apac/en/institutions/insights/investment-insights/south-koreas-rising-governance-tide-how-to-ride-the-value-up-wave.html)
that strengthened incentives for participating high-dividend companies. While these
outcomes cannot be attributed to the programme alone, they point to stronger corporate
participation and investor interest.

### Taiwan Joins, and the Model Broadens

In 2024, Taiwan made [“Strengthening the Capital Market and Enhancing Market Value”](https://www.twse.com.tw/market_insights/en/detail/8a8216d6913637e40191d4af667a0349)
a key TWSE priority. Building on similar initiatives in Japan and Korea, the strategy
encourages listed companies to assess [indicators](https://www.twse.com.tw/market_insights/en/detail/8a8216d69236c2e301929eb8f0d901b6)
such as cost of capital, profitability and PBR, develop measures to enhance corporate
value, and communicate them to investors. The TWSE subsequently incorporated [Corporate Value Enhancement Plans](https://cgc.twse.com.tw/pressReleases/promoteNewsArticleEn/4433)
into its Corporate Governance Best Practice Principles and launched an [IR engagement platform](https://www.twse.com.tw/market_insights/en/preview/8a8216d69642659a0196604e5b7f0084)
in December 2024 to strengthen communication between listed companies and institutional
investors.

## Why Value-Up Resonates Across ASEAN

The structural frictions behind North Asia’s value-up reforms are also visible across
parts of ASEAN. Despite substantial market development, [ASEAN capital markets](https://www.theacmf.org/initiatives/market-development/acmf-market-development-programme)
vary considerably in depth, liquidity and institutional participation. The [ACMF](https://www.theacmf.org/about/acmf-implementation-plan-2009-2015)
has highlighted relatively small individual market size, subscale trading volumes
and limited liquidity as constraints on regional market development, while the [ADB](https://www.adb.org/news/adb-launches-6-billion-initiative-and-institutional-support-deepen-asean-capital-markets)
noted in 2026 that ASEAN markets had yet to reach the scale needed to support the
region’s long-term development ambitions. These conditions increase the relevance
of measures aimed at improving disclosure, corporate value and investor engagement.

Regulators and exchanges are already moving in this direction. Singapore has expanded
research coverage for smaller issuers through the [Grant for Equity Market Singapore (GEMS)](https://www.mas.gov.sg/schemes-and-initiatives/grant-for-equity-market-singapore-scheme);
Malaysia’s [Capital Market Masterplan 2026-2030](https://www.sc.com.my/api/documentms/download.ashx?id=5465cb2e-48de-40c7-b05f-9c3f5fc959c8)
has emphasised stronger governance and sustainability disclosure; and Thailand’s
[Corporate Governance Code](https://www.sec.or.th/cgthailand/EN/Pages/CGCODE/CGCODEINTRODUCTION.aspx)
and [SET ESG Data Platform](https://weblink.set.or.th/dat/news/202210/22117631.pdf?_gl=1*1jxqjfx*_gcl_au*MTc1NzA5NjY3OC4xNzg3MDQ2NDU5Li0uLS4xNzg3MDQ2NDU5LjI0OTIyMTk1Ni4xNzg3MDQ2NDYwLjE3ODcwNDY0NTk.*_ga*NzQzOTI5ODY1LjE3ODcwNDY0NjA.*_ga_ET2H60H2CB*czE3ODcwNDY0NjAkbzEkZzAkdDE3ODcwNDY0NjAkajYwJGwwJGgw)
support greater transparency, shareholder engagement and long-term value creation.
Together, these initiatives provide a foundation for the broader value-up frameworks
now emerging across ASEAN.

### The Current State of Play Across ASEAN

The six markets sit at different points on the value-up spectrum, ranging from established
programmes with dedicated funding and incentives to earlier-stage governance and
market-development reforms.

### Singapore

In November 2025, the Monetary Authority of Singapore’s Equities Market Review Group
closed a year of consultation with a package of measures built around a S$30 million
[Value Unlock](https://www.mas.gov.sg/news/media-releases/2025/review-group-completes-equities-market-review)
scheme, a second tranche of Equity Market Development Programme (EQDP) fund-manager
appointments, and an SGX-Nasdaq dual-listing bridge. Implementation has since progressed
in 2026. MAS expanded the EQDP from S$5 billion to [S$6.5 billion](https://www.sgpc.gov.sg/api/file/getfile/Media%20release_MAS%20Announces%20Expansion%20of%20Equity%20Market%20Development%20Programme.pdf?path=%2Fsgpcmedia%2Fmedia_releases%2Fmas%2Fpress_release%2FP-20260212-2%2Fattachment%2FMedia+release_MAS+Announces+Expansion+of+Equity+Market+Development+Programme.pdf),
while the Value Unlock programme opened for applications through its [Equip and Elevate grants](https://www.sgx.com/value-unlock),
which co-fund training and professional advisory support in areas including corporate
strategy, financial management and investor relations. Meanwhile, SGX and MAS have
advanced the regulatory framework for the [Global Listing Board](https://www.mas.gov.sg/news/media-releases/2026/enhancements-to-mas-regulatory-framework-to-facilitate-dual-listings-on-the-singapore-exchange),
designed to provide eligible companies with a streamlined pathway to dual listings
on SGX and Nasdaq.

A March 2026 [MAS speech](https://www.mas.gov.sg/news/speeches/2026/strengthening-foundations-and-driving-value-creation-in-singapores-listed-companies)
by Managing Director Chia Der Jiun positioned these measures as part of a broader
effort to embed value creation more firmly into Singapore’s corporate and market
architecture. [MAS](https://www.sid.org.sg/Web/About/News-and-Press/News_2026/2026-03-06_BT_MAS_weighs_changes_to_corporate_governance_code.aspx)
is reviewing the Code of Corporate Governance to place greater emphasis on boards’
responsibilities for shareholder value creation and investor engagement, while SGX
is working towards mandatory disclosures covering areas such as dividend policy,
investor relations policy and the link between remuneration and value creation. 
This suggests that Singapore’s approach is beginning to extend beyond voluntary 
capability-building towards stronger market-wide expectations around how companies
create and communicate shareholder value.

This is complemented by measures addressing the demand and visibility sides of the
market. By February 2026, [S$3.95 billion](https://www.sgpc.gov.sg/api/file/getfile/Media%20release_MAS%20Announces%20Expansion%20of%20Equity%20Market%20Development%20Programme.pdf?path=%2Fsgpcmedia%2Fmedia_releases%2Fmas%2Fpress_release%2FP-20260212-2%2Fattachment%2FMedia+release_MAS+Announces+Expansion+of+Equity+Market+Development+Programme.pdf)
under the EQDP had been allocated across 9 asset managers, while the enhanced [S$50 million GEMS scheme](https://www.sid.org.sg/common/Uploaded%20files/Resources/Presentations/ARCsem2026/3SGXRegCo2026RegulatoryUpdates.pdf)
had supported more than 1,500 research reports and provided first-time coverage 
for over 100 stocks. Together with Value Unlock, these measures give Singapore a
comprehensive framework, combining company-level value creation with institutional
capital, research coverage and potentially stronger disclosure requirements.

### Malaysia

Malaysia launched its [MY Value Up Programme ](https://www.sc.com.my/resources/media/media-release/sc-and-bursa-malaysia-introduce-my-value-up-programme)
in April 2026 as a joint initiative of the Securities Commission and Bursa Malaysia
under the Capital Market Masterplan 2026-2030. The initial programme focuses on 
88 of the largest public-listed companies, each with a market capitalisation of 
about RM4 billion or more and collectively representing around 80% of Bursa Malaysia’s
total market capitalisation. Participation remains voluntary but is highly encouraged.

The programme asks companies to develop and communicate medium- to long-term [Value Up Plans](https://www.bursamalaysia.com/sites/5d809dcf39fba22790cad230/assets/6a277a2fe6414abf3a485be2/MY_Value_Up_Guidebook.pdf)
setting out their growth strategies, targets and capital allocation priorities, 
supported by stronger board-level accountability and investor engagement. Rather
than prescribing uniform performance targets, the Guidebook provides a principles-
based framework and suggested metrics that companies can adapt to their business
and industry. These include measures of capital efficiency and shareholder value,
such as ROE relative to the cost of equity, alongside shareholder returns and relevant
market-valuation and sector-specific indicators.

Implementation is being phased. In 2026, the focus is on [familiarisation and alignment](https://www.sc.com.my/resources/media/media-release/sc-and-bursa-malaysia-launch-my-value-up-guidebook),
with regulators engaging targeted companies on the submission of their plans. From
2027, targeted companies are expected to begin publishing their Value Up Plans, 
creating a public baseline for investor assessment and engagement. The framework
could become more prescriptive over time, with regulators indicating that [mandatory](https://theedgemalaysia.com/node/800864)
disclosure requirements may be considered from 2028. Alongside the MY Value Up Programme,
Bursa Malaysia’s expanded [Research Incentive ](https://www.bursamalaysia.com/listing/get_listed/issuer_services)
[SchemE](https://www.bursamalaysia.com/listing/get_listed/issuer_services)[ Plus (Bursa RISE+)](https://www.bursamalaysia.com/listing/get_listed/issuer_services)
complements the initiative by providing research coverage for selected companies,
helping to improve their visibility and investor awareness.

### Thailand

The Stock Exchange of Thailand (SET) launched the JUMP+ Program to help listed companies
strengthen their competitiveness and create long-term corporate value. The program
supports companies throughout the process, from developing their growth plans to
putting them into action.

The inaugural JUMP+ cohort comprises 142 listed companies that voluntarily joined
the program, surpassing the initial target of 100 companies. As of 1 April 2026,
they represented approximately 16% of all listed companies and 14% of total market
capitalization. Participants span all industry groups across SET and mai.

At the core of JUMP+ is a three-year value-creation plan for 2026–2028, approved
by each company’s board of directors and covering three dimensions: Business, Governance
and Climate Action. Participating companies have developed 277 Business Plans, focusing
on areas including revenue and profit growth, business expansion, operational efficiency
and competitiveness. On governance plans, participants have set out 459 governance
initiatives addressing accountability and transparency, people and risk management,
and board structure and qualifications. Meanwhile, more than 80% of participating
companies have developed Climate Action Plans, including initiatives on greenhouse
gas measurement, verification and emissions reduction.

**JUMP+ Program Framework**

**Supporting Companies from Planning to Action**

SET, the Capital Market Development Fund (CMDF) and partner organizations support
companies in implementing their JUMP+ plans through grants of up to THB 5 million,
advisory services, training and workshops, and corporate visibility activities such
as JUMP+ Investor Day, roadshows, media program and research coverage.

Participating companies have now entered the implementation phase, with progress
to be reported every six months and communicated to investors through activities
such as Earnings Call (Opportunity Day).

**Linking Corporate Value Creation with Domestic Investment**

JUMP+ is also connected to Thailand’s broader domestic investment ecosystem. Under
the expanded Thai ESG and Thai ESGX rules, shares of JUMP+ participants with a Corporate
Governance Report (CGR) score of at least 90 may qualify as eligible investments.

### Related**Posts**

###  󠀁[Value-Up Arrives in ASEAN: Six Markets Competing to Narrow the Gap](https://www.thailand-business-news.com/set/334172-value-up-comes-to-asean-how-six-markets-are-racing-to-close-the-discount-set-news)󠁿

###  󠀁[Thai Listed Companies Face Nearly $11 Billion in Annual Climate‑Risk Costs by 2050, S&P Global Warns](https://www.thailand-business-news.com/environment/329326-thai-listed-companies-face-nearly-11-billion-in-annual-climate-risk-costs-by-2050-sp-global-warns)󠁿

###  󠀁[Offering incentives for companies on the Green List with the IDX Green Equity designation](https://www.thailand-business-news.com/asean/indonesia/331229-offering-incentives-for-companies-on-the-green-list-with-the-idx-green-equity-designation)󠁿

###  󠀁[Digital Economy and E-Commerce: ASEAN’s $1 Trillion Growth Engine](https://www.thailand-business-news.com/asean/323792-digital-economy-and-e-commerce-aseans-1-trillion-growth-engine)󠁿

As of 27 February 2026, 77 Thai ESG funds, including Thai ESGX funds, were managed
by 19 asset managers, with aggregate net asset value of approximately THB 104.1 
billion. This provides a potential channel for eligible companies’ value-creation
plans and progress to gain greater visibility among domestic investors.

By connecting strategy, implementation, support and investor transparency, JUMP+
aims to help Thai listed companies strengthen competitiveness, pursue sustainable
growth and create long-term value.

Indonesia has pursued value-up through market-structure and governance reform. In
February 2026, the Financial Services Authority (OJK), together with the Indonesia
Stock Exchange (IDX) and Indonesia Central Securities Depository (KSEI), accelerated
an [eight-point capital-market reform agenda](https://ojk.go.id/en/berita-dan-kegiatan/siaran-pers/Pages/OJK-Accelerates-Capital-Market-Reform-to-Strengthen-Liquidity-And-Investor-Confidence.aspx)
aimed at strengthening liquidity, transparency and investor confidence. The reforms
focus on ownership transparency, free float, enforcement and listed-company governance,
addressing concerns over concentrated shareholdings and investability that had weighed
on the market’s standing with international investors.

A central pillar is tighter ownership and free-float disclosure. IDX amended Regulation
I-A in March 2026 to strengthen free-float requirements, including a minimum [15%](https://ojk.go.id/en/berita-dan-kegiatan/siaran-pers/Pages/March-2026-Board-of-Commissioners-Meeting-Financial-Services-Sector-Stability-Remains-Maintained.aspx)
threshold for the largest new listings, while refining the definition of free float
and strengthening governance requirements for listed companies. OJK, IDX and KSEI
also introduced public disclosure of shareholdings above [1%](https://iru.ojk.go.id/iru/WebSite/ArticleList/View/978_OJK%2C_IDX%2C_and__KSEI_Complete_Four_Agenda_Items_for_Indonesia_Capital_Market_Transparency_Reform),
implemented a High Shareholding Concentration framework, expanded investor classifications
in KSEI ownership data to [39 categories](https://iru.ojk.go.id/iru/WebSite/ArticleList/View/978_OJK%2C_IDX%2C_and__KSEI_Complete_Four_Agenda_Items_for_Indonesia_Capital_Market_Transparency_Reform),
and strengthened reporting of controlling shareholders, directors, commissioners
and beneficial owners. Together, these measures are intended to make effective ownership
and investable float easier for investors and index providers to assess, while improving
price discovery and market liquidity.

**I****ndonesia Capital Market Transparency Reform Framework**

Source: [BRI Danareksa Sekuritas](https://link.brights.id/brids/storage/43809/20260218-Macro-Strategy.pdf)

The reforms have received recognition from global index providers, but implementation
remains under scrutiny. [MSCI](https://app2.msci.com/webapp/index_ann/DocGet?format=html&lang=en&pub_key=L%2FzT8OMvlCI=)
acknowledged Indonesia’s transparency reforms in April 2026 and, in its [June Market Classification Review](https://ir.msci.com/news-releases/news-release-details/msci-announces-results-msci-2026-market-classification-review),
described the measures as a step in the right direction while retaining Indonesia’s
Emerging Market status. However, it continued to flag concerns over shareholder 
transparency and trading behaviour, and warned that insufficient progress by the
November 2026 Index Review could trigger further action, potentially including consultation
on a reclassification to Frontier Market status.

The Philippines has taken a more engagement-led approach to corporate value creation,
focusing on improving the connection between listed companies and investors. The
Philippine Stock Exchange (PSE) launched [InvestPH](https://www.pse.com.ph/investph-highlights-philippines-as-investment-destination/)
in 2025 as a platform to showcase listed companies and the broader Philippine investment
opportunity to domestic and foreign institutional investors. Institutional investors
account for around [80%](https://www.pse.com.ph/investph-highlights-philippines-as-investment-destination/)
of PSE trading activity, making deeper engagement with this investor base particularly
relevant to market liquidity and company visibility. The inaugural event attracted
more than [300](https://www.pse.com.ph/investph-highlights-philippines-as-investment-destination/)
participants and facilitated 180 one-on-one meetings between institutional investors
and participating listed companies. The initiative expanded in [2026](https://www.pse.com.ph/investph-showcases-philippine-investment-prospects/),
when foreign investor participation nearly doubled and 250 one-on-one meetings were
held between institutional investors and companies. [InvestPH 2026](https://www.pse.com.ph/investph-showcases-philippine-investment-prospects/)
also placed corporate governance and value creation more explicitly on the agenda,
including a dedicated session on “Governance and Value Up Reforms” involving the
Securities and Exchange Commission and listed-company executives.

This engagement extends beyond the annual conference. Since 2022, the PSE and Bloomberg
have jointly organised [Investor Relations Workshops](https://documents.pse.com.ph/wp-content/uploads/sites/4/2026/04/2025-Annual-Report.pdf)
aimed at strengthening communication between listed companies and investors and 
sharing strategies to enhance stakeholder value. The 2025 workshop, for example,
brought together 34 participants, including representatives from 12 PSE-listed companies.
The PSE also holds PSE STAR (Strengthening Access and Reach): Investor Day, which
allows listed companies to present their performance, developments and growth strategies
through live and on-demand briefings. As of August 2026, the PSE had conducted 13
editions featuring 75 listed companies. The [latest](https://www.pse.com.ph/pse-gathers-investors-for-2026-mid-year-star-edition/),
held on August 17 and 18, featured live briefings from executives of 13 companies.
These initiatives are supported by efforts to improve corporate disclosures. In 
January 2025, the PSE released [ESG 101: A Reporting Guidebook](https://documents.pse.com.ph/wp-content/uploads/sites/15/2025/01/FINAL-ESG-101-A-Reporting-Guidebook.pdf)
to help issuers produce reliable disclosures of material sustainability information
and connect ESG performance with business strategy, financial results and long-term
value creation. Together, these initiatives reflect an emerging model centred on
stronger investor communication, corporate visibility and direct engagement.

The engagement push is being complemented by broader reforms intended to make the
Philippine capital market more accessible and competitive. The [Capital Markets Efficiency Promotion Act (CMEPA)](https://www.dof.gov.ph/pbbm-recto-lead-pse-bell-ringing-for-cmepa-vow-efficient-rollout-of-landmark-capital-markets-reform/),
which took effect in July 2025, reduced the stock transaction tax from 0.6% to 0.1%,
alongside other measures aimed at simplifying taxation and lowering transaction 
costs. This provides an important market-structure counterpart to the PSE’s engagement
and disclosure initiatives seek to improve how companies communicate their value
proposition, while reforms such as CMEPA reduce frictions for investors seeking 
to allocate capital. The Philippines’ model therefore remains less prescriptive 
than the value-up frameworks emerging elsewhere in ASEAN, but is increasingly building
the infrastructure for stronger investor engagement, visibility and market participation.

### Vietnam

Vietnam remains an observer of the regional value-up trend, with reforms focused
on strengthening market quality rather than establishing a dedicated company-level
programme. Under its [Securities Market Development Strategy to 2030](https://ssc.gov.vn/webcenter/portal/ssc/pages_r/l/chitit?dDocName=APPSSCGOVVN1620152433),
the government aims to raise listed-company governance above the Southeast Asian
average, strengthen ESG practices and attract greater institutional and foreign 
participation. The [Securities Market Upgrade Scheme](https://ssc.gov.vn/webcenter/portal/ubck/pages_r/l/chitit?dDocName=APPSSCGOVVN1620158986),
approved in September 2025, further links these reforms to Vietnam’s ambition to
meet international emerging-market standards. Progress was recognised by [FTSE Russell](https://www.lseg.com/en/media-centre/press-releases/ftse-russell/2025/ftse-russell-country-classification-september-2025)
in October 2025, when it announced that Vietnam would be reclassified from Frontier
to Secondary Emerging Market status, effective September 2026. [FTSE Russell](https://www.lseg.com/en/media-centre/press-releases/ftse-russell/2025/ftse-russell-country-classification-september-2025)
cited improvements including the removal of prefunding requirements for foreign 
institutional investors and enhancements to market infrastructure, while noting 
that Vietnam had met all criteria for Secondary Emerging Market status.

**Timeline for the reclassification of Vietnam from Frontier to Secondary Emerging
Market**

Source: [VinaCapital ](https://vof.vinacapital.com/insights/latest-insights/formalizing-vietnams-digital-assets-markets-2/)

Progress continued in 2026, with the [State Securities Commission (SSC)](https://ssc.gov.vn/webcenter/portal/ubck/pages_r/l/chitit?dDocName=APPSSCGOVVN1620168830&dID=178489)
prioritising improvements in corporate governance, information disclosure and auditing,
alongside stronger market supervision and further securities-law reforms. Vietnam
therefore remains at an earlier stage than Malaysia or Thailand: its current focus
is on building the governance, transparency and market infrastructure that could
support more explicit corporate value-up initiatives over time.

Opportunities for Companies to Uplift Their Value

For issuers, the region’s emerging value-up frameworks point to four interconnected
opportunities: (1) improving capital efficiency and shareholder returns; (2) strengthening
governance, disclosure and investor engagement; (3) broadening the investor base
and market visibility; and (4) benchmarking against regional and global best practice.
Together, these measures can reinforce investor confidence, improve access to capital
and support stronger corporate value over time.

Improve Capital Efficiency and Shareholder Returns

The most direct opportunity is to improve how companies earn, allocate and return
capital. Companies can divest non-core or underperforming assets, unwind inefficient
cross-shareholdings and redirect capital towards businesses capable of generating
stronger returns. Evidence from Japan supports the link between capital efficiency
and market valuation: a 2026 [Journal of Corporate Finance](https://www.sciencedirect.com/science/article/pii/S0929119926000672?via%3Dihub)
study of the Tokyo Stock Exchange’s initiative found that investors particularly
favoured low-PBR companies with higher ROE, alongside valuation improvements among
persistently undervalued firms.

Disciplined capital allocation is particularly relevant in Southeast Asia. [BCG](https://web-assets.bcg.com/pdf-src/prod-live/navigating-the-path-to-sustained-shareholder-returns.pdf)’
s 2025 Southeast Asia Value Creators Report, covering 525 listed companies, found
that the region generated a market-cap-weighted total shareholder return (TSR) of
12.4% over the six years to July 2025, but a median TSR of only 4.4%. Multibusiness
conglomerates, representing around [8%](https://web-assets.bcg.com/pdf-src/prod-live/navigating-the-path-to-sustained-shareholder-returns.pdf)
of regional market capitalisation, recorded a median TSR of 0%. BCG identifies sharper
capital allocation as one of the key levers for addressing this gap, including clearer
prioritisation between investment in core businesses, M&A, dividends and share buybacks.

**Six-year TSR by Region (31 July 2019-31 July 2025, %)**

Source: [BCG 2025 Southeast Asia Value Creators Report](https://web-assets.bcg.com/pdf-src/prod-live/navigating-the-path-to-sustained-shareholder-returns.pdf)

Where attractive reinvestment opportunities are limited, companies can return surplus
capital through sustainable dividends, share buybacks and share cancellations. These
measures should form part of an integrated capital-allocation framework: investment
should take priority where expected returns exceed the cost of capital, while excess
capital can be returned when compelling opportunities are unavailable.

Strengthen Governance, Disclosure and Investor Engagement

Strong governance supports value creation by increasing investor confidence in how
companies are managed and capital is allocated. The [ASEAN Corporate Governance Scorecard (ACGS)](https://www.sid.org.sg/common/Uploaded%20files/Resources/ASEAN_Scorecard/ACGS2026.pdf)
provides a common regional benchmark covering shareholder rights and equitable treatment,
disclosure and transparency, sustainability and board responsibilities.

In 2026, the [Singapore Governance and Transparency Index (SGTI)](https://www.sid.org.sg/common/Uploaded%20files/Resources/SGTI/2026/CGS-SGTI-Forum-Presentation-5-Aug-2026.pdf)
assessment of 458 listed companies illustrates both progress and remaining gaps.
The overall mean governance score reached 69.5, but only 33% of dividend-paying 
companies disclosed a dividend payment policy, 40% explained how boards solicit 
shareholder views, and 49% disclosed an investor relations policy. These gaps highlight
opportunities for companies to differentiate themselves through clearer capital-
return policies and more structured investor engagement.

**B.R.E.A.D Score by Percentage (General Performance)**

Source: [Corporate Governance for the Value Era](https://www.sid.org.sg/common/Uploaded%20files/Resources/SGTI/2026/CGS-SGTI-Forum-Presentation-5-Aug-2026.pdf)

Governance improvements are most effective when accompanied by forward-looking disclosure
and regular communication with investors. Clearer reporting of capital-allocation
priorities, medium-term objectives and progress against targets can reduce information
asymmetry, while investor engagement allows management to explain strategic decisions
and better understand shareholder concerns.

Broaden the Investor Base and Improve Market Visibility

Companies can broaden their investor base by improving both investability and visibility.
Free float and trading liquidity are important because major global indices consider
shares actually available to investors when determining index inclusion and weights.
[MSCI’s Global Investable Market Index Methodology](https://www.msci.com/indexes/documents/methodology/1_MSCI_Global_Investable_Market_Indexes_Methodology_20240812.pdf)
uses a Foreign Inclusion Factor reflecting shares available to international investors,
while [FTSE Russell](https://www.lseg.com/content/dam/ftse-russell/en_us/documents/policy-documents/free-float-restrictions-june-2025.pdf?utm_source=chatgpt.com)
similarly adjusts index weights for public free float. MSCI further refined its 
methodology in its May 2026 Index Review by introducing more granular [free-float bands](https://app2.msci.com/webapp/index_ann/DocGet?format=html&lang=en&pub_key=eMNmCn5t4lA=).

Visibility is particularly important for small- and mid-cap companies. The [OECD’s 2025 review of equity markets for growth companies](https://www.oecd.org/content/dam/oecd/en/publications/reports/2025/09/equity-markets-for-growth-companies_44f1dce4/bbffd4f7-en.pdf)
found that 54% of surveyed jurisdictions identified insufficient research availability
as an investor challenge, while another 8% cited the cost of obtaining research.
Companies can address this through stronger investor relations, accessible corporate
information and broader analyst coverage, helping reduce information asymmetries,
support liquidity and attract a wider range of investors.

**Comparison of Free Float Levels between Growth and Main Markets, end-2023**

Source: [OECD 2025 Equity Markets for Growth Companies](https://www.oecd.org/content/dam/oecd/en/publications/reports/2025/09/equity-markets-for-growth-companies_44f1dce4/bbffd4f7-en.pdf)

Benchmark Against Regional and Global Best Practice

Benchmarking against regional and global peers can help companies identify gaps 
in governance, disclosure, investor engagement and capital efficiency, while providing
a practical basis for strengthening their investment proposition. This is becoming
increasingly relevant as investor expectations and market standards converge across
jurisdictions.

Regional initiatives are reinforcing this trend. The ASEAN Capital Markets Forum’s(
ACMF) [Action Plan 2026-2030](https://www.theacmf.org/images/downloads/pdf/3%20Nov_ACMF%20AP_Public.pdf)
seeks to deepen market connectivity and promote greater consistency and interoperability
across ASEAN capital markets, including more comparable sustainability disclosures
and stronger cross-border investment frameworks. As standards converge, companies
that benchmark against leading peers can identify gaps earlier, adapt to changing
investor and regulatory expectations, and compete more effectively for regional 
and international capital.

**ACMF Action Plan 2026-2030: Strategic Priorities and Initiatives**

Source: [ACMF Action Plan 2026-2030](https://www.theacmf.org/images/downloads/pdf/3%20Nov_ACMF%20AP_Public.pdf)

Challenges and Path to Implementation

Superficial Compliance

Voluntary or principles-based frameworks risk encouraging disclosure without meaningful
changes to capital allocation, governance or shareholder returns. Clear targets 
and progress monitoring are therefore important. The [TSE](https://www.jpx.co.jp/english/equities/follow-up/02.html)
publicly tracks companies’ disclosure status, while Thailand’s [JUMP+ ](https://www.set.or.th/en/market/information/jump-plus/overview)
requires board-approved 2026-2028 value-creation plans and half-yearly updates, 
helping investors distinguish substantive reform from participation in name only.

Weak Incentive Design

Participation also depends on whether the benefits justify the costs of additional
disclosure, governance reform and changes to capital allocation. As the [OECD](https://www.oecd.org/content/dam/oecd/en/publications/reports/2012/08/corporate-governance-value-creation-and-growth_g1g1f853/9789264179547-en.pdf)
highlights, governance frameworks should align incentives with long-term value creation
rather than compliance alone. Value-up programmes therefore need sufficiently clear
benefits to encourage meaningful participation.

Free Float and Ownership Transparency

Concentrated ownership can limit free float and institutional participation. [OECD](https://www.oecd.org/content/dam/oecd/en/publications/reports/2025/09/equity-markets-for-growth-companies_44f1dce4/bbffd4f7-en.pdf)
research finds that strategic individuals hold more than one-quarter of equity in
growth companies, versus 7% in main-market companies, while institutional ownership
stands at 18% versus 46%. Clearer ownership structures and greater tradable float
can therefore improve investability and broaden the investor base.

Liquidity

Limited market liquidity can also constrain the impact of company-level reforms.
Institutional investors held only [21%](https://www.oecd.org/content/dam/oecd/en/publications/reports/2026/06/asia-capital-markets-report-2026_c2b3e716/08f87bed-en.pdf)
of Asian listed equity in 2025, compared with 47% globally, with holdings below 
10% in Indonesia, the Philippines and Vietnam. Addressing this gap requires improvements
in free float and investor engagement alongside broader efforts to deepen institutional
participation and secondary-market activity.

**Institutional Investor Holding in Asia, 2025**

Source: [OECD Asia Capital Markets Report 2026](https://www.oecd.org/content/dam/oecd/en/publications/reports/2026/06/asia-capital-markets-report-2026_c2b3e716/08f87bed-en.pdf)

Outlook

ASEAN’s value-up agenda is likely to become more structured as regulators move from
encouraging better corporate practices towards clearer expectations around targets,
disclosure and accountability. Companies can prepare by establishing credible capital-
efficiency targets, shareholder-return policies and mechanisms for tracking and 
communicating progress.

Value creation is also becoming more closely linked to ASEAN’s broader sustainability
and market-integration agenda. The [ACMF Action Plan 2026-2030](https://www.theacmf.org/images/downloads/pdf/3%20Nov_ACMF%20AP_Public.pdf),
with 11 priorities and 18 initiatives, promotes regional integration, sustainability
and global positioning through measures including ASEAN indices, cross-listing frameworks
and regional sustainability initiatives. This could make corporate disclosure, governance
and investability increasingly important beyond companies’ domestic markets.

Ultimately, the next phase of ASEAN’s value-up agenda will depend less on launching
new programmes than on translating existing initiatives into measurable corporate
change. As regional standards and capital markets become more interconnected, companies
that strengthen capital allocation, governance, transparency and investability early
should be better positioned to attract regional and international capital.

This article was written by Smartkarma, in collaboration with ASEAN Exchanges. 

**Source** : [Value-Up Comes to ASEAN: How Six Markets Are Racing to Close the Discount](https://www.aseanexchanges.org/content/value-up-comes-to-asean-how-six-markets-are-racing-to-close-the-discount/?rand=138677)