Krungsri sees support for Japan's interests

Krungsri sees support for Japan's interests

Mr Okubo says the bank aims to maintain its leadership position in the Japanese corporate market and targets total loan growth of 3% this year, in line with Thai GDP growth.
Mr Okubo says the bank aims to maintain its leadership position in the Japanese corporate market and targets total loan growth of 3% this year, in line with Thai GDP growth.

Bank of Ayudhya, which markets itself as Krungsri, believes the new government will support Japanese investment in Thailand.

Japan remains the country's leading foreign investor, accounting for 23.3 billion baht or 28.6% of total investment. Japanese investors are monitoring the political situation as a coalition of parties attempts to form a government.

Bunsei Okubo, Krungsri's head of Japanese corporate and multinational banking, believes the new government should support Japanese investment here.

Thailand's strong economic fundamentals and infrastructure system are advantages supporting foreign direct investment, including from Japanese investors. However, Thailand's ageing society and labour shortage are disadvantages that could have a negative effect on economic growth over the long term, said Mr Okubo.

"The bank and Japanese investors are monitoring proposals such as minimum wage increases. We have no concerns regarding this issue now," he said.

Krungsri is the industry's No.1 Japanese corporate base in the Thai market with a 75% market share.

The bank aims to be the preferred choice for multinational companies in Thailand by offering value-added financial products and services, said Mr Okubo.

There are 4,500 Japanese corporate and multinational companies in Thailand, of which around 3,300 are the bank's customers.

He said Krungsri wants to maintain its leadership position in the Japanese corporate market, targeting loan growth in the business segment of 3% this year, in line with Thai GDP growth.

The bank's total loan portfolio in the business segment was 269 billion baht at the end of 2022.

In addition, the bank's 2023 business strategy, named Krungsri Asean Link, and the strong network of its Japan-based parent Mitsubishi UFJ Financial Group (MUFG) should facilitate business expansion both in the Thai and regional markets, said Mr Okubo.

Krungsri Asean Link offers a full range of financial services to help customers grow their business in nine countries within Asean.

The services can also help customers in more than 50 countries through MUFG's network, he said.

As a regional hub, Krungsri supports both Japanese and multinational clients investing in the region, particularly in strong industries in each market.

For example, the bank supports customer investments in the automotive sector in Indonesia and India, the electronics sector in Vietnam, and the agricultural sector in Cambodia, said Mr Okubo.

Krungsri is also moving ahead with its policy of environmental, social and governance finance, taking part in driving Asean startups to reach international standards through collaboration with various strategic partners.

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