Krungsri, also known as the Bank of Ayudhya, believes that the new Thai government will continue to encourage Japanese investment in the country. Japan is currently Thailand’s largest foreign investor, contributing 28.6% of total investment, or 23.3 billion baht. As political parties form a coalition government, Japanese investors are closely monitoring the situation.
Bunsei Okubo, the head of Japanese corporate and multinational banking at Krungsri, expressed confidence that the incoming government will support Japanese investment in Thailand. He highlighted the country’s robust economic fundamentals and infrastructure system as key factors attracting foreign direct investment, including from Japan. However, Okubo also acknowledged that Thailand’s ageing population and labour shortage could pose challenges to long-term economic growth. Okubo said…
“The bank and Japanese investors are monitoring proposals such as minimum wage increases. We have no concerns regarding this issue now.”
With a 75% market share, Krungsri is the leading Japanese corporate base in the Thai market. The bank serves around 3,300 of the 4,500 Japanese corporate and multinational companies operating in Thailand. Krungsri aims to maintain its dominant position in the Japanese corporate market, targeting a 3% loan growth in the business segment this year, in line with Thai GDP growth.
The bank’s 2023 business strategy, Krungsri Asean Link, and its strong ties with Japan-based parent company Mitsubishi UFJ Financial Group (MUFG) are expected to facilitate business expansion in both Thai and regional markets. Krungsri Asean Link provides a comprehensive range of financial services to support customers’ business growth in nine countries within the Asean region. Through MUFG’s network, the services can also assist customers in over 50 countries.
As a regional hub, Krungsri supports Japanese and multinational clients investing in various industries across the region. These include the automotive sector in Indonesia and India, the electronics sector in Vietnam, and the agricultural sector in Cambodia.
Furthermore, Krungsri is actively pursuing environmental, social, and governance finance initiatives, collaborating with strategic partners to help ASEAN startups achieve international standards, reported Bangkok Post.
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