ANZ’s foray into Thailand market a long-term bet

The banking landscape in Asia has seen more foreign banks expanding in the region. Most recently, the Australia and New Zealand Banking Group (ANZ) – Australia’s third largest bank – was granted a subsidiary banking license to open 20 branches across Thailand; signaling the Thai government’s readiness to accept more foreign bank investment. Leon Perera, Chief Executive Officer of Spire Research and Consulting, shared his view on Thailand as an investment banking location.

ANZ reckoned that the size of Thailand’s economy, its importance as a regional manufacturing center, as well as its proximity to other South East Asian markets amounted to a positive long-term outlook for the country. Previously, Thailand had opened its doors to other foreign banks, including Japanese banks Mizuho, Bank of Tokyo-Mitsubishi and Sumitomo-Mitsui, just to name a few.

While mobile banking may become an important channel in future, ANZ and the other foreign banks in Thailand should continue to look into developing physical banking channels, as cash remained as the principal mode of transaction in the country.

Perera highlighted that despite the recent coup in Thailand, the government would continue to accept applications from foreign banks to set up subsidiaries, in the hope that this would signal the new government’s willingness to give foreign investors market access and a level playing field, reinforcing investor confidence. ANZ’s decision would clearly be a boost to Thailand’s standing as a foreign investment destination, which would have taken a knock due to the recent political turmoil culminating in a military coup.

https://www.spireresearch.com/newsroom/media/anzs-foray-into-thailand-market-a-long-term-bet/

Comments

The race to invest in Vietnam – How FDI is changing Vietnam’s economy and society

Vietnam’s economy has been among the fastest growing in Southeast Asia. Today, it is a key destination for Foreign Direct Investment (FDI) in the region. In 2016, FDI climbed to USD24.4 billion, a 9 per cent growth compared to 2015. This is despite Vietnam suffering an epic drought in 2016 and a third of its vast population of 93 million people living in poverty. Vietnam has won a reputation as a cheaper manufacturing hub compared to China. Could FDI propel Vietnam to become Asia’s next Tiger economy? A growing economy With a USD200 billion Gross Domestic Product (GDP), Vietnam’s economy is tracking well since the start of deep economic reforms – known as Doi Moi – in 1986. Since 1990, its GDP per capita growth has been one of the fastest among emerging economies, at an average 6.4 per cent (yearly) growth in the 2000s. Vietnam has improved provision of basic services. In 2014, the part of the population living below poverty line fell to 13.5 per cent – down from approxim...

Spire speaks on Omni-channel strategies for Indonesian retailers

Spire was honored to participate in the Samsung Top Achiever Retailer (STAR) event held on 22 August, in Jakarta. Albertus Edy Rianto, Senior Manager, Spire Indonesia, shared his insights on the significance of Omni – channel strategies for mobile phone retailers. Albertus discussed offline-to-online strategy, where multiple channels merge to help target customers across various channel platforms. He elaborated that more than 80% of Indonesian mobile phone retail sales in 2020 will still occur at physical outlets. However, 71% of Indonesians browse online for a while prior to shopping at a physical store. Factors that influence customers include better delivery conditions, storefront apps for better sales and even packaging. As customers become more tech-savvy and demanding, more consideration will be given to innovative payment processes and browsing more than one channel to make a purchase. As far as online purchases are concerned, 25% of customers still feel ...

Africa – the rising star in fashion?

Africa’s fashion industry is emerging as a serious global competitor and one that is known for its daring use of bright hues. Sub-Saharan Africa’s apparel and footwear market is now worth an estimated USD 31 billion. Singer Beyonce recently wore the Maki Oh label from Nigeria. African design houses are not limited to fashion but make luxurious accessories and jewelry. The rising fashion industry is good news for African economies. Textile factories are growing in number and capacity. However, the industry has been calling on African governments to invest more in training, finance and credit schemes as well as improved transportation infrastructure. This is necessary to help the industry attract the investment it needs to be competitive. Can Africa become a global fashion powerhouse? https://www.spireresearch.com/newsroom/spirethoughts/africa-the-rising-star-in-fashion/

Harnessing social innovation for Malaysia’s progress

The Social Impact Innovation Challenge by Berbudi Berganda – driven by Agensi Inovasi Malaysia (National Innovation Agency) – brought together individuals across Malaysia to scout for innovative solutions for Malaysia’s social development. Carried out over a period of 10 weeks, 12 finalists were shortlisted out of 300 entries using selection criteria that spanned three parameters – innovation, cost-effectiveness and sustainability. Yap Far Loon, Business Development Director, Telecommunication of Spire Research and Consulting, was among the Challenge panelists interviewed on BFM 89.9 (The Business Radio Station) for the Live and Learn show. He shared his views on how to measure impact of social innovation. This Social Impact Innovation Challenge strives to turn innovative ideas into realities. To explain the impact of social innovation, Far Loon uses a simple demand-supply model. Supply here refers to the finalists. Demand refers to the beneficiaries, such as people with low-inco...

Shanghai catches the eye of global healthcare service providers

Shanghai is set to become the next hub for quality healthcare services as new hospitals collaborate with established industry players. Will Chinese medical tourists check in at home for medical treatment? Leon Perera, Chief Executive Officer of Spire Research and Consulting, shared his insights in the Asian version of Japan’s Nikkei newspaper. Home to a population of 23 million – where 53% of the population is middle class and above – the city of Shanghai continues to lure more foreign investors in the healthcare segment for the affluent. Raffles Medical Group, Singapore’s premium private healthcare provider, has set foot in Shanghai with its first overseas hospital, part of a wider trend of premium healthcare service providers setting up shop in the city. Perera highlighted that the growth in healthcare services has been fuelled by the government’s policy shift to allow more foreign ownership of hospitals. The intent behind this is perhaps to retain some of the 60,000 me...

The Knowledge to Decide

Search This Blog