EXIM Thailand has announced its new role and tagline as a lead bank taking one step ahead for development of Thai businesses and Thailand to grow sustainably in the global arena. The Bank aims to develop Thai entrepreneurs from upstream to downstream with three new tools, namely, SME global identity shaping service, overseas investment promotion service for marketing penetration into new frontiers including CLMV, BCG business promotion service in response to Thailand's national policy to become a low-carbon society. The Bank's outstanding loans are targeted to increase to 300,000 million baht by 2027.
Mr. Arkhom Termpittayapaisith, Minister of Finance of Thailand, presided over the opening ceremony of "EXIM Thailand Synergizing toward Development for All Thais" event to announce the new role and tagline of Export-Import Bank of Thailand (EXIM Thailand) with a special talk titled "Decode Courage, Transform Thailand on the Global Front," and was welcomed by Dr. Darmp Sukontasap, EXIM Thailand Chairman of the Board of Executive Directors and Dr. Rak Vorrakitpokatorn, EXIM Thailand President, together with EXIM Thailand's former directors and executives, executives, executives of government agencies and private entities, customers, entrepreneurs and mass media and the general public at Samyan Mitrtown on November 3, 2022.
The Minister of Finance said that Thai economy this year has signaled a recovery from the past 1-2 years with economic growth and export growth predicted at 3.4% and 8.1%, respectively. Export is still a key economic engine, and the expanded role of EXIM Thailand should help drive continued growth of export. However, export growth still relies on development of certain fundamentals in the country, e.g. development of infrastructures, rationalization of rules and regulations contributing to efficient trade and investment ecosystem, creation of environment conducive to research and development to uplift Thai industries toward future business world in line with global megatrends, and accelerated cultivation of entrepreneurship DNA for Thais to step up as entrepreneurs, mustering up their courage to penetrate not only domestic markets, but also global markets with ample fresh opportunities ahead using their strengths to enhance their brands
According to the Minister of Finance, both public and private sectors including state-owned specialized financial institutions (SFI) like EXIM Thailand need to join hands to lay a solid foundation for development of Thai industrial sectors from upstream to downstream throughout the supply chains to ensure firm and sustainable growth, and driving Bio-Circular-Green (BCG) economy taking the "courage" to establish knowledge base and collaboration in accessing financial sources, business networks and transfer of innovation and advanced technology, particularly among little people like individuals, community enterprises and SMEs, so that they would be able to catch up with the rapidly changing world of technology and the global environmental conservation and sustainability trends. Under such circumstances, Thai entrepreneurs should dare to change their mindset, identity and business models.
Dr. Darmp Sukontasap, EXIM Thailand's Chairman of the Board of Executive Directors, said that the changing face of the world post COVID-19 in respect of whether the environment and the consumer behaviors has necessitated organizations' rethinking of their business models and business plans to relieve the inevitably intertwined damage incurred in multiple dimensions. Meanwhile, a large number of little players from those in the grassroots economy to SMEs have disappeared. Although the pandemic has later eased, the subsequent eruption of Russia-Ukraine tension has provoked inflation crisis across the world. Several countries including Thailand have been busy with remedying immediate problems so much that they may have forgot to address structural problems or long-term problems ahead, particularly those regarding global warming, social inequality and quality of life. It is thus the time for all sectors including EXIM Thailand to collaborate in expanding the role as part of the government mechanism to drive the country to move forward with stability, prosperity and sustainability in economic, social and environmental dimensions.
Dr. Rak Vorrakitpokatorn, EXIM Thailand President, revealed that the country's structural problems with reliance on such conventional industries as combustion automobile, computer and accessories, and oil-related products, which combinedly represent one-third of total export, while hi-tech products account for only 27% of total export and development of BCG industries is underway. As Thailand is moving toward an aged society and 90% of the population have a low level of savings, domestic entrepreneurs still dare not take an outbound step toward the global markets in terms of both export and investment, and also firmly engage in their existing businesses like foods, agriculture and tourism. Only a few have managed to build and bring their own Thai brands to attract the global markets. In view of this, EXIM Thailand has responded to the Ministry of Finance policy in expanding its role of a lead bank to take "One Step Ahead for All Development" with commitment to build Thai economic warriors to fight powerfully and sustainably in the global arena by using three new tools below:
- SME Global identity shaping service using both financial and non-financial tools, i.e. provision of information, incubation, training and seminar, and financial facilities on a full-fledged basis, to enable changeover of new generation farmers, potential community enterprises and retail entrepreneurs from nobody to somebody on the global front.
- Overseas investment promotion service targeting at amazing M entrepreneurs so that they would be able to invest beyond Thailand to build production bases and expand trade networks.
- BCG business promotion service in response to Thailand's national policy to become a low-carbon society aiming to support small, medium and large entrepreneurs from upstream to downstream in jointly driving BCG business model in Thailand in linkage with global supply chains in conjunction with provision of credit facilities and development of financial instruments in support for Thai BCG businesses.
EXIM Thailand President said that, for almost the past 2 years, EXIM Thailand has pursued its role as "Thailand Development Bank" in response to the objectives of its establishment in 1993 and official commencement of operation in 1994. Throughout the almost 3 decades of operation up to the eruption of COVID-19, the Bank has played its increasingly prominent role of "taking risks," "giving birth to new industries" and "supporting Thai investment overseas" with the firm determination to take "courage" to make dreams come true for Thai people and Thailand.
The organization transformation carried out by EXIM Thailand has got started with adoption of such new financial reporting standard as IFRS9 being the first state-owned specialized financial institution (SFI) to do so, portfolio rebalancing to serve sustainable growth covering expanded role in supporting eco-friendly industries, particularly those related to BCG economy in a more concrete and vigorous manner, and innovation-driven and value-added industries, support of Thai entrepreneurs' penetration of new frontiers for the balance between existing markets and new markets and enabling entrepreneurs of all sizes including "individuals" to apply for "EXIM Business Building Credit for Individuals" for their export-related business start-up, Top X Executive Program in collaboration with the College of Management of Mahidol University and three key business institutions of the country, namely the Federation of Thai Industries, the Thai Chamber of Commerce and Board of Trade of Thailand and Thai National Shippers' Council aiming for development and enhancement of Thai businesses to grow in the global markets, EXIM Thailand Pavilion online trade platform in collaboration with world leading online trade platforms to serve as a fast track for Thai SMEs in access to global trade arena, new financial innovations responsive to the changing business trends, i.e. EXIM Solar Orchestra to finance installation of solar rooftop systems for factories alongside linking with carbon market ecosystem, EXIM Green Bond with EXIM Thailand being the first state-owned SFI to issue such a long-term bond using THOR (Thai Overnight Repurchase Rate) as the reference rate, EXIM Biz Transformation Loan to finance business uplifting with lowest interest rate of 2% per annum, EXIM Shield Financing as an end-to-end financing in lump sum serving both capital and trade insurance coverage, and E-Commerce Financing new under development aiming to support online trade entrepreneurs, Credit Scoring for use in credit underwriting process for shorter turnaround time in credit operation, and innovation of EXIM Index as a forward-looking tool to indicate Thai export directions in the next 3 months to help exporters appropriately plan and realign their business strategies.
Dr. Rak further said that the Bank has braved challenges with business remodeling toward sustainability using the 4P equation, starting with People with creation of empathic workplace for the employees so that good services would be delivered to each group of customers, particularly little players in the business world and people in the community and society, along with caring for the Planet by supporting eco-friendly businesses to mitigate pollution and build a better world for all, in conjunction with determination to deliver services of quality and Productivity, i.e. quick, accessible and simple services of value proposition, and with such business model, leading to generation of Profit and growth in a sustainable manner to the organization which will contribute to inclusive growth of all stakeholders with no one left behind.
Regarding the operating results during January-September 2022, EXIM Thailand rendered fully integrated financial and non-financial supports for Thai entrepreneurs amid multi-faceted uncertainties. As of the end of the third quarter of 2022, new loan approvals amounted to 51,243 million baht, a year-on-year increase of 32.84%, of which 12,961 million baht was for SMEs, up by 20.16% year-on-year. EXIM Thailand recorded total outstanding loans of 159,816 million baht, a 12,137 million baht or 8.22% year-on-year growth. Its total outstanding loans stood at 162,513 million baht as of October 20, 2022 and are expected to reach the level beyond 165,000 million baht by the end of 2022, a record high since its start of business operation. The Bank has targeted to expand its total outstanding loans to 300,000 million baht by 2027.
"EXIM Thailand One Step Ahead for All Development is our tagline committing us to move toward the Next Normal world alongside Thai public and private sectors. With our missions as a state-owned SFI, we seek to respond to and fulfil the needs and expectations of customers, entrepreneurs and the general public and be part of the driving force to grow Thai economy, reduce inequality and poverty, and join the global community in solutions of global environmental issues, leveraging on the expertise and preparedness of our personnel who keep developing new tools and business models responsive to the ever-changing world and empowering us to step ahead side by side with our stakeholders from all sectors," added Dr. Rak.
Source: Export-Import Bank of Thailand
