Kuala Lumpur, 22 January 2026 — The Institute for Democracy and Economic Affairs (IDEAS) has released a policy brief titled ‘ASEAN and OECD Alignment on State-owned Enterprise (SOE) Governance Reforms.’ The brief is authored by Alissa Rode, Senior Manager of Research at IDEAS, and Ng Chien Chern, an MSc candidate in International Social and Public Policy at the London School of Economics and Political Science. The brief highlights the strategic opportunity for strengthening SOE governance reform across ASEAN through deepening multilateral cooperation with the Organisation for Economic Co-operation and Development (OECD).

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. SOEs often benefit from regulatory barriers to competition and privileged access to finance and procurement contracts, which distorts markets and can breed complacency, creating fiscal risks for taxpayers (who ultimately own state companies). Improving SOE governance to recognised international standards is vital for enabling competitive markets and boosting investor confidence in the region.

As a global standard-setter in SOE governance, the OECD and its Guidelines on Corporate Governance of SOEs offer valuable insights for ASEAN. Some ASEAN states are engaging with the OECD and have pursued reforms in line with OECD standards, with OECD membership candidates Indonesia and Thailand embarking on public sector reform programmes tied to accession requirements.

In light of these developments, the brief finds that:

• Overall, high levels of OECD engagement coincide with higher levels of recent SOE reform activity. Middle-income states such as Indonesia, Thailand, Vietnam, and the Philippines are actively engaging with OECD and referencing OECD governance standards to advance SOE reforms. In contrast, Malaysia and Singapore remain minimally active in OECD cooperation and SOE reforms, missing opportunities to lead regional alignment in this area.
• ASEAN member states are actively consolidating state ownership structures and board professionalisation, though with varying effect on accountability and countering political interference. Reforms in other areas such as competitive neutrality, transparency, and sustainability are proceeding at an uneven pace.
• Deepening OECD-ASEAN cooperation on SOE governance reforms would benefit from ASEAN adopting public sector governance as a substantive workstream, as opposed to a mainstreaming initiative. ASEAN and the OECD could jointly identify SOE governance as a priority area within the Vision 2045 implementation agenda, anchoring cooperation in a long-term strategic framework.

An OECD–ASEAN conditional financing framework can be deployed as a lever to promote SOE governance reforms in emerging ASEAN markets by linking funding access to reform commitments.

“By building a common agenda on SOE governance reform, ASEAN member states can unlock greater value from SOEs, learning from each other and from international experience through multilateral cooperation. In a climate where trust in multilateral and national institutions is increasingly fragile, ASEAN should forge its own path in public sector governance, starting with SOE reforms as a key priority. ASEAN member states should coordinate to deepen resourcing and capacity building for reforms, leveraging on existing momentum with OECD,” said Alissa Rode, co-author of the report.

For more information, please download the report on our website.

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Download the Media Statement PDF File Here

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Ryan Panicker

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