Bangkok--10 Apr--Siam Commercial Bank
Now being granted a preliminary approval to prepare for commencement of operations as a subsidiary bank in Myanmar, Siam Commercial Bank (SCB) is ready to provide corporate, SME, and retail clients in the emerging market with total financial solutions and to drive Myanmar as a strategic country for growing its international business network. SCB is also ready to bridge trade and investment between Thailand and Myanmar as well as regional trade within the CLMV+2 countries, namely, Cambodia, Laos, Myanmar, Vietnam, China, and Singapore. This step will prepare support for economic and industrial potential and long-term growth. The bank expects to complete setting up the subsidiary business and ready to fully operate by the end of 2020 with a lending target of 7 billion baht in the first 5 years.
Commenting on the recent banking license, SCB CEO & Chairman of the Executive Committee Arthid Nanthawithaya said, “Myanmar is among the region’s top potential economic and business countries attracting the interest of investors worldwide. Over the past 5 years its average GDP has been in a range of 6-7%. Thailand has a cumulative permitted investment in Myanmar at around 11 billion USD and is the third biggest investor after Singapore and China. Thailand is also Myanmar’s second biggest trade partner after China, with trade value of 7.6 billion in 2019. Eying this potential, SCB is seriously committed to expanding our business in Myanmar. We have had a representative office in Myanmar since 2012, and today we are very proud to be granted a preliminary approval by the Central Bank of Myanmar as a subsidiary bank. This license will allow SCB to open a subsidiary bank 100% owned by SCB and providing the same comprehensive commercial banking services as local banks. Subsidiary License is allowed to open up to 10 locations in major business areas. In the early phase, SCB will focus on catering to Thai corporate clients with existing investments there and others who want to expand their trade and investment in Myanmar. We are ready to serve clients with a full range of financial solutions like loans, foreign exchange, trade finance, supply chain management, and cash management.”
“Trends suggest constant economic growth across business and industrial sectors in Myanmar, and a highlight attracting foreign investors is that labor costs are not too high. Myanmar offers an opportunity for Thai investors to establish a production base for exporting their products from there. At present, there are over 100 Thai business operators investing in Myanmar with our support. Our clients are from diverse sectors such as consumer products, energy, industrial estates, manufacturing, and agro-industry. We have set a lending target of 7 billion baht by 2024.”
Under this license agreement, SCB will be able to extend banking services to retail customers in Myanmar from January 1, 2021 onward. Myanmar’s retail banking market is a very attractive opportunity with the country’s population of 54 million. SCB will consider providing options of financial products and services to local customers, including deposits, personal loans, digital banking, and wealth management for instance.
The license to operate as a subsidiary bank in Myanmar stresses SCB’s readiness in terms of regional networks covering the CLMV+2 countries and bridging investment with international investors seeking to expand trade and investment in Thailand, Myanmar, and other countries in the Greater Mekong Subregion.