State-owned enterprises (SOEs) are  central contributors to economic activity in several ASEAN countries, but poor governance and preferential treatment can see them stifle private sector growth. This policy brief explores how SOE reforms have advanced in ASEAN member states in tandem with deepening multilateral cooperation between OECD and ASEAN. Covering SOE reform and OECD cooperation activity across key ASEAN economies, this brief indicates that deepening multilateral cooperation on SOE reforms requires a focused ASEAN workstream on public sector governance. In addition, the participation of lagging states would strengthen ASEAN centrality and regional alignment in this space.

Key findings include:

• Overall, high levels of OECD engagement coincide with higher levels of SOE reform activity in the last five years. ASEAN member states that cooperate with OECD benefit from expertise sharing, peer visibility, and credibility with stakeholders that contributes to this momentum.
• Middle-income states such as Indonesia, Thailand, Vietnam, and the Philippines are actively engaging with OECD and using its standards to advance SOE governance reforms.

• In contrast, Malaysia and Singapore remain minimally active in OECD cooperation and SOE reforms, missing opportunities to lead regional alignment, while lesser developed countries in ASEAN need more integration through concerted capacity-building.
• Active reform areas across ASEAN member states include clarifying state ownership and board professionalisation, though with varying degrees of effectiveness.
• Reforms in other areas such as competitive neutrality, transparency, and sustainability are proceeding at an uneven pace.