In the past, regional integration in Asia has basically been limited to market-driven economic integration and private networking. Policy-driven or institutional co-operation and integration have been very limited. The Asian financial crisis as well as the introduction of the Euro has contributed to a change in this pattern. A growing awareness of the advantages of regional co-operation is discernible among Asian states. The Chiang Mai initiative and numerous regional trade agreements are the most visible results of this growing awareness. Nevertheless it is to be doubted that this awareness will transform into concrete and higher level institutional integration among Asian states within the near future. The paper summarises the progress achieved so far in regional co-operation and integration and discusses the main factors favouring and limiting future perspectives.