Bangkok--9 Sep--KASIKORNBANK
KASIKORNBANK joins forces with Tokyo Metropolitan Support Center to encourage SMEs from Tokyo to invest in Thailand and ASEAN, after the Japanese government announced backing for 10,000 SMEs nationwide to expand business operations overseas. This collaboration initially targets 50-70 SME companies from Tokyo whose total investment could rise to the tune of THB3.5 billion.
Mr. Banthoon Lamsam, KASIKORNBANK Chairman of the Board, said that the Bank has signed a memorandum of understanding with Tokyo Metropolitan Small and Medium Enterprise Support Center – a state agency in charge of guaranteeing support for, and development of the SME sector in the capital. There are around 440,000 SME enterprises in Tokyo at present and the agency expects the number of its members to increase from the current number of 30,000.
KBank’s contribution to this collaboration will be in providing knowledge and information about the Thai economy and investment, as well as in other ASEAN nations to stimulate business with SMEs from Tokyo. Activities to be organized include seminars, local and international business matching, worldwide business networking, and educational trips which will afford interested parties insight into investment and business operations. All of these activities should yield a higher Thai-Japan trade value. The Bank will also provide services which will lend support to operations of Japanese SMEs investing in the Thai market.
This collaboration will enhance bilateral trade cooperation and encourage streamlining of Thai SMEs’ management systems, in addition to technology management disciplines from Japanese firms. Particular interest will probably be seen in the machinery and heavy equipment industry. During an initial stage of this partnership, there may be around 50-70 companies making their way to Thailand, offering the opportunity of a total investment of over THB3.5 billion.
KBank has gone extra mile in taking care of Japanese businesses making their presence in Thailand by having on board personnel who understand Japanese language and culture, rendering impressive services to customers. Other undertakings include the establishment and improvement of a “Japanese Friendly Branch”, as well as language supports for fundamental service such as call center, ATM and document preparation assistance – all of which have proven to be tremendously helpful to Japanese customers.
But that is not all. KBank has partnered with a number of Japanese financial institutions which are core lenders to local SMEs, allowing the Bank to offer services to those new investors in Thailand. Currently, the Bank has 3,000 Japanese customers, or the equivalent of a 13-percent stake in the market. With the intention of being the most preferred Thai local bank among Japanese businesses, KBank aims to nudge its share up to 16 percent over the next two years.
Mr. Yuji Izawa, Chief Executive Officer of Tokyo Metropolitan Support Center added that the Japanese business sector actually comprises only less than one percent of large-scale enterprises like Toyota or Honda, while over 99 percent are SMEs. This means that small and medium companies have been the key contributors in driving the economy of this leading industrial nation.
Over the past several years, however, Japan has been encumbered by a decline in domestic purchasing power, owing largely to a smaller working and child population, in contrast with an increase in aging citizens. Such a demographic conundrum has pressured local SMEs to look to new markets overseas or even seek to cut costs by relocating production bases outside Japan. Amid prevailing economic pressures, it is expected that this business trend will only continue to rise.
Realizing this, the Japanese government has formulated measures to assist SME operators to weather the unfavorable conditions and expand business offshore successfully. SME operators are encouraged to obtain financial support, management guidance, and information regarding doing business overseas, from both state and private agencies in the country. The government has established a goal to have more than 10,000 SMEs expanded their business abroad by 2017.
Thailand, readily equipped with infrastructure and geographical advantages over other states within this region, has been identified by the Japanese government as a business hub in ASEAN for Japanese SMEs. Its collaboration with KBank is believed to bring about highest benefits for SME companies interested in investing in both Thailand and ASEAN, considering our well-recognized services and largest share of SME customers in Thailand. The Bank is determined to earnestly provide financial services and business data for Japanese investors in Thailand. As a strong financial institution that understands Japanese investors’ requirements, KBank will be able to facilitate and create confidence among SMEs from Japan seeking to have a presence in Thailand.