Thailand & Hong Kong aims for ASEAN financial hub status

Thailand is exploring a partnership with Hong Kong to establish a financial hub aimed at connecting ASEAN markets.

Deputy Finance Minister Paopoom Rojanasakul announced the initiative after a meeting with Hong Kong’s Financial Secretary, Paul Chan, during the Asia-Pacific Economic Cooperation (APEC) Finance Ministers’ Meeting in Lima, Peru.

The meeting highlighted Thailand’s ambition to become a global financial player, as Paopoom invited Hong Kong’s business community to contribute to the development of Thailand’s financial hub, a strategic priority for the current government. Paopoom sees the partnership as providing mutual benefits among the two nations.

“Thailand stands out as a gateway to ASEAN markets, particularly rapidly growing economies such as Cambodia, Laos, Myanmar, and Vietnam (CLMV). The financial cooperation between Thailand and Hong Kong promises mutual benefits, as ASEAN, Hong Kong, and China are increasingly interconnected through trade and investment.”

To support this vision, the Finance Ministry plans to reform financial regulations to make them more flexible and transparent. These reforms aim to facilitate business operations and introduce new incentives, including tax and non-tax benefits. Additionally, the ministry is committed to developing a modern financial ecosystem and infrastructure to support business and financial innovation.

Paopoom also noted the success of the cross-border payment system integration, particularly between Thailand’s PromptPay and Hong Kong’s Faster Payment System. This collaboration has set a new standard for convenient and rapid payments between the two economies, benefiting both businesses and the general public.

Benefiting all

“Both parties praised the success of cross-border payment system cooperation, particularly the integration of Thailand’s PromptPay with Hong Kong’s Faster Payment System. This collaboration has set a new standard for convenient and rapid payments between the two economies, benefiting both businesses and the general public.”

Following their discussions, both ministers expressed confidence in the financial relationship between Thailand and Hong Kong. They exchanged ideas on expanding financial collaboration to foster economic growth and financial innovation, aiming to promote strong and stable economic connectivity in the ASEAN and APEC regions.

Hong Kong ranks as Thailand’s 13th-largest trading partner and seventh-largest export market. In 2023, the two-way trade between Thailand and Hong Kong amounted to US$13.7 billion (473 billion baht), representing a 6.94% increase year-on-year. Thai exports were valued at US$11.1 billion, marking a 10% rise, while imports were worth US$2.61 billion, a decline of 5.04%. Consequently, Thailand posted a trade surplus of US$8.48 billion with Hong Kong.

Key exports from Thailand to Hong Kong included gems and jewellery, electronic circuits, computers and parts, and internal combustion engines, reported Bangkok Post.