Krungsri (Bank of Ayudhya PCL) unveiled 2021 economic outlook for Thailand and ASEAN at Krungsri Business Talk: Thailand and ASEAN Economic Outlook 2021, a hybrid webinar exclusively organized for the Bank's corporate customers through a synergy between Krungsri, MUFG and leading financial institution partners across ASEAN. The event brought together leading economic and financial experts throughout the region for an in-depth analysis and discussion session on the global economy and financial industry as well as insights into four ASEAN countries - Thailand, Vietnam, Indonesia and Myanmar, as the world is still confronting uncertainty through and beyond the COVID-19 crisis.
Mr. Pornsanong Tuchinda, Krungsri Head of Commercial Banking, said that "The seminar is a testimonial to Krungsri's synergistic capability in collaborating with MUFG's extensive network, bringing together leading speakers from MUFG Bank in Singapore and partner banks in ASEAN - Bank Danamon Indonesia and VietinBank from Vietnam, for an insightful online discussion session. Krungsri is well-positioned to offer a full range of financial and advisory services as well as insights to explore growth opportunity in potential markets in ASEAN and be well-prepared for the volatility of the business world. The event also reflects Krungsri's commitment to providing comprehensive support to our corporate customers as we strive to be their trusted banking partner."
Dr. Somprawin Manprasert, Head of Krungsri Research and Chief Economist, viewed that the global economy is on a gradual recovery path after the COVID-19 crisis has left permanent losses of supply potential throughout 2020. Thai business sectors across industries will be likely to improve next year, but the tourism sector continue to be a laggard in recovery. Rising unemployment rate will affect domestic purchasing power and high-income group is likely to be the major growth engine of consumption in the country.
Among the major global megatrends that will shape the world's economic and social outlook is deglobalization which will continue to prevail in 2021. Asian countries will recover faster than the European and American regions, as the COVID-19 pandemic left scars on global demand and market volatility. The greater adoption of technology will mitigate the adverse impacts and improve business resiliency. New global supply chains will be shorter, with less human involvement. Regionalization will play more pivotal role, highlighting the highly dynamic comparative advantage of ASEAN as Thailand and regional peers are in different positions across supply chains of different industries. This creates complementary opportunities to strengthen linkages and leads to new investments within the region.
Ms. Sook Mei LEONG, ASEAN Head of Global Markets Research, MUFG Bank Singapore, commented that the global economy in 2021 is likely to recover, driven by economic and political movements in the world's largest economies and the overall improved Asian markets. Influential factors include the direction and policies set forth by the new leaders of Japan and the United States. Meanwhile, the yen and the yuan tend to be stronger. China is likely to recover faster than other G10 economies. In ASEAN, general elections in Malaysia and Vietnam next year could affect the economic change of the region.
According to Mr. Rommakiet Kawratanamporn, Vice President of Group Business Management Department, Krungsri Retail and Consumer Banking and executive committee at The Thai Business Association of Myanmar, Myanmar is a very promising market for Thai businesses since Myanmese consumers' attitude and perception towards Thai products are highly positive. Businesses with high growth potentials for Thai investors include the energy and electricity, agricultural equipment and machinery, tourism, food packaging and e-commerce. Krungsri representative office in Yangon is ready to serve Thai businesses interested to run business in Myanmar with a range of services encompassing finance, rules and regulations, insights, as well as networking with Myanmese public and private sectors.
Discussing the economic overview of Indonesia, Mr. Wisnu Wardhana, Economist from Bank Danamon Indonesia, said that the government is currently promoting investment in ICT sector and revising rules in the omnibus bill to facilitate business investment as well as developing an investment ecosystem to encourage employment. Interesting business sectors for Thai investors are ICT, finance and food and beverage.
Vietnam is a very attractive destination for foreign investors, as affirmed by Mr. Le Duy Hai, Head of Corporate Banking Division, VietinBank in Vietnam. Supportive factors for foreign direct investment in Vietnam are tax incentive for public-private partnership projects, low labor costs and relatively high political stability, as well as tax benefits for local and international investments gained from multilateral trade agreements such as the CPTPP (Comprehensive and Progressive Agreement of Trans-Pacific Partnership).
As the 7th event of the seminar series, the webinar was exclusively organized for Krungsri corporate customers through Krungsri Business Empowerment, with focus on providing insights and knowledge via seminars and business networking activities that will consistently create business opportunities and build a constant growth for customers. Watch the full webinar at Krungsri Business Empowerment Facebook, Krungsri Simple Youtube and Krungsri.com
About Krungsri
Krungsri (Bank of Ayudhya PCL and its group companies) is the fifth largest financial group in Thailand in terms of assets, loans, and deposits, and one of Thailand's five Domestic Systemically Important Banks (D-SIBs) with 75 years of history in the country. Krungsri is a strategic member of the Mitsubishi UFJ Financial Group (MUFG), Japan's largest financial group and one of the world's largest financial organizations. Krungsri provides a comprehensive range of banking, consumer finance, investment, asset management, and other financial products and services to individual consumers, SMEs, and large corporations through 679 branches (640 Banking Branches and 39 Auto Business Branches) and over 33,325 service outlets nationwide. The Krungsri Group is the largest card issuer in Thailand with 9.4 million credit cards, sales finance, and personal loan accounts in its portfolio; a major automobile financing service provider (Krungsri Auto); one of the fastest growing asset management companies (Krungsri Asset Management); and a pioneer in microfinance (Ngern Tid Lor).
Krungsri is strongly committed to the highest level of integrity in conducting its business. All Krungsri Group companies have been awarded accreditation from the Private Sector Collective Action Coalition Against Corruption (CAC) in collaboration with industry peers and stakeholders on a zero tolerance approach to corruption.
About MUFG (Mitsubishi UFJ Financial Group, Inc.)
Mitsubishi UFJ Financial Group, Inc. (MUFG) is one of the world's leading financial groups. Headquartered in Tokyo with over 360 years of history, MUFG is a global network with over 2,700 locations in more than 50 countries. The Group has over 180,000 employees, and offers services including commercial banking, trust banking, securities, credit cards, consumer finance, asset management, and leasing. The Group aims to "be the world's most trusted financial group" through close collaboration among our operating companies and flexibly respond to all of the financial needs of our customers, serving society, and fostering shared and sustainable growth for a better world. MUFG's shares trade on the Tokyo, Nagoya, and New York stock exchanges. For more information, visit https://www.mufg.jp/english.