Bangkok--Nov 22--Siam Commercial Bank
To shed light on the 2006 economic outlook, Siam Commercial Bank and EuroMoney Magazine are jointly holding an international forum entitled “Amazing Thailand: Funding the Future & Accessing Opportunities" on November 22-23, at Shangri-La Hotel, Bangkok. A team of SCB and SCB Securities Co. executives will be on hand to unveil the promises of the Thai financial market and to reinforce confidence of investors in and outside of the region.
In 2005, the world economy has faced many challenges, e.g. economic adjustments, high oil prices and hikes in interest rates. This has prompted Thailand to adjust to both internal and external factors.
When asked about next year’s outlook, Khunying Jada Wattanasiritham, SCB President, commented that, in 2006, it is likely that the Thai economy will continue its robust growth with greater strength, as the 2005 risk factors dissipate. Nonetheless, the prospect of an increasing global economic imbalance still deserves close attention.
Some of the contributing factors to such imbalance include: China’s increasing role as an exporter and a FDI destination and the continuing trend of higher oil prices and the continued upswing of interest rates. Also, FTAs will likely bring about fiercer business competition between trade partners, as trade-related measures such as higher labor standards and stronger environmental protection requirements, became part of the economic equation.
According to Khunying Jada, export and domestic consumption will remain the key drivers of a sustainable economic development for Thailand. This is evident from the experience over the past 6 to 7 years when domestic consumption in Thailand took a quantum leap to 50% of the GDP. Public and private investments will also serve as engines of growth, especially in light of the 1,800 billion baht worth of mega-projects recently announced by the Thai government.
As for the capital market, Khunying Jada added that the Thai capital market has, thus far, made an impressive headway, with many new capital mobilization and investment options available to local and overseas institutions. What is rather interesting is that, since the beginning of this year, supra-national entities such as the Asian Development Bank (ADB) and the Japan Bank for International Cooperation (JBIC), have entered the market to mobilize its capital through the issuing of Thai Baht Bonds. Such initiatives would help the country’s capital market to further develop and to increase its profile within the international financial community.
According to Khunying Jada, such initiatives by large foreign entities bode well for SCB and its business units as SCB is in a vantage position to provide comprehensive advisory services to potential foreign investors and clients. On debt instrument issues, for instance, SCB, with its team of experienced executives and an elaborate IT network, can quickly, effectively and accurately reach individual Thai investors. This makes SCB an ideal local partner for such foreign entities who aim to mobilize their capital in Thailand.
Khunying Jada’s assertion is backed by the fact that, this year, SCB was named "Deal of the Year and Dealer of the Year” by the Thai Bond Dealing Center. It was also named the "Best Bond House” and "Best Local Derivative House in Thailand” by FinanceAsia and AsiaRisk. And, last but not least, SCB was recognized as the “Best Bank in Thailand 2005” by EuroMoney, FinanceAsia and the Banker magazines.
At this upcoming forum, SCB, as a key sponsor, and SCB Securities Co. intend to present useful comments and insights to leading local and overseas executives and investors. SCB believes that this forum will help contribute to the lifting of favorable sentiments of investors, both inside and outside of the region, towards the growth potential of the Thai economy and the investment opportunities that present themselves in Thailand.
For more information please cotact:
Wattanee Somchit
Tel : (02) 544-4502 , Fax : (02) 937-7454
email : [email protected]
www.scb.co.th End.