UOB Thailand is poised to support business clients with their regional expansion, capitalising on Southeast Asia’s growth potential, while also helping Thai individuals access financial services more effectively amidst growing household debt.
Richard Maloney, the bank’s newly appointed President and CEO, shared in an exclusive interview with the Bangkok Post that the region and Thailand continue to be prime destinations for foreign direct investment (FDI). He also highlighted UOB Thailand’s proactive approach in monitoring global economic developments, including policies introduced by new US President Donald Trump, to identify potential opportunities and challenges locally.
RISE OF SOUTHEAST ASIA
Geopolitical risks and US-China tensions are anticipated to persist regardless of the US presidential election outcome. Following Mr Trump’s victory and the continuation of US protectionist measures, particularly tariff policies, the bank is closely monitoring policy developments to identify the potential opportunities and challenges for both Asean and Thailand, said Mr Maloney.
Richard Maloney, President and CEO, UOB Thailand, is seen taken photo with senior management at the Bank’s 25th anniversary gala dinner.
UOB predicts a slowdown in the US economy, transitioning to a “soft landing” between late 2024 and early 2025, with GDP growth projected to remain steady at 3.2% for both years.
However, Mr Trump’s assertive economic measures could push inflation higher, prompting fewer rate cuts by the US Federal Reserve. Now the Federal Reserve is anticipated to implement only three additional rate cuts, instead of four, each by 25 basis points, according to UOB Research.
Despite slower pace of growth in the US and other major global economies, Asean stands out as a region of robust potential. As a regional financial institution with an extensive network, UOB remains committed to helping customers capture greater opportunities across the region, he said.
UOB projects that the GDP growth of the Asean-6 economies will average 4.8% in both 2024 and 2025. During this period, Vietnam is expected to lead the region with growth rates of 6.4% and 6.6%, respectively, followed by the Philippines at 6% in 2024 and 6.5% in 2025.
In 2024 and 2025, Indonesia’s GDP growth is projected at 5.2% and 5.3%, respectively. Malaysia’s economy is expected to grow by 5.4% in 2024 and 4.7% in 2025, while Singapore is forecast to achieve growth rates of 3.3% and 2.9%.
Thailand’s GDP growth is anticipated to reach 2.7% in 2024 and 2.9% in 2025.
“UOB Thailand is well-positioned to support business clients, including multinational corporations, large local enterprises and Thai small and medium-sized enterprises [SMEs], as they pursue regional growth opportunities amidst Asean’s positive economic outlook,” said Mr Maloney, who took office as President and CEO at UOB Thailand on 1 July 2024. “In my new role, I aim to connect clients with market opportunities in Thailand and across UOB s regional network to realise greater business potential.”
Mr Maloney is a seasoned banking professional with 40 years of experience spanning wholesale banking, capital markets and retail banking. Since joining UOB in 2014, he has served as chief operating officer (COO) for Group Wholesale Banking.
Before joining UOB, Mr Maloney was the COO for Asean at Bank of America Merrill Lynch. He has held several board positions in his career, including chairman of the board for Bank of America Malaysia Berhad, and has been an active member in industry initiatives, such as representing Bank of America Merrill Lynch on the Association of Banks in Singapore as well as leading UOB’s participation in Singapore Financial Industry Crisis Management exercises.
His career began in finance roles in New York, followed by key positions in London, Hong Kong and Singapore.
As COO for Group Wholesale Banking, Mr Maloney has been instrumental in driving business growth for the bank through the development and execution of strategic priorities. He led a portfolio of business support functions, including infrastructure and product development projects, client services and deal implementation, anti-financial crime operations, and data monetisation efforts, among others.
LONG-TERM COMMITMENT
The robust economic growth of Asean has made the region a magnet for foreign capital, driven by FDI, cross-border trade, and a surge in international tourist arrivals. More importantly, Thailand remains a key destination, actively engaging in all aspects of foreign capital flows, even amidst softer GDP growth compared to other regional countries.
Mr Maloney said the Thai government’s stimulus initiatives, particularly the Ignite Thailand policy, are expected to continue attracting foreign investment and facilitating long-term economic expansion.
“I believe the government’s stimulus programmes, along with the consistency of some policies, are instrumental in supporting Thailand’s long-term economic growth,” said Mr Maloney.
Recently, the prime minister and other government officials participated in international events, engaging with global leaders, businesses, and investors. These efforts, according to Mr Maloney, have fostered stronger relationships and a better understanding of Thailand’s economic opportunities.
“Although Thailand’s GDP growth is projected to remain around 3% this year and next, there is potential for stronger growth in the range of 4-5% over the next 7-10 years,” he said. “This positive momentum will be supported by the government’s economic policies, and we anticipate that next year’s growth will surpass this year’s performance.”
The Ignite Thailand initiative is expected to benefit multiple sectors, particularly emerging industries such as digital technology, aligning with Thailand’s long-term economic strategy, according to Mr Maloney. UOB Thailand has also adapted its business strategies to align with government policies, he added.
Under its Asean Linkage Strategy, UOB connects global investors from regions such as the US, Europe, and China with opportunities in Asean, including Thailand. In Thailand, the bank operates an FDI advisory unit and a specialised China desk to support both inbound and outbound investments.
Moreover, Thailand’s Board of Investment has signed a memorandum of understanding with UOB Thailand to enhance business cooperation and facilitate investment opportunities in Thailand across UOB’s core markets.
Since establishing its FDI advisory team in 2013, UOB Thailand has helped 440 companies invest in the country, creating over 29,000 jobs in Thailand.
Since 2020, the bank has facilitated investments worth approximately US$1.7 billion (43 billion baht). It has also supported more than 220 Thai companies in expanding their operations across the region.
“Our commitment to Thailand is unwavering, as demonstrated by our 25 years of business operations in the country,” said Mr Maloney. “The establishment of our new head office, UOB Plaza Bangkok, further reaffirms our long-term dedication to Thailand.”
HELP FOR SMES AND RETAIL
According to Mr Maloney, the rise of Southeast Asia presents opportunities not only for multinational and large corporations but also for Thai SMEs, which can benefit from cross-border trade and investment.
Local SMEs can leverage UOB’s cross-border supply chain solutions platform to drive business expansion across the region. Additionally, digitalisation plays a pivotal role in enabling Thai SMEs to expand internationally and enhance their competitiveness in regional markets, he noted.
Financial supply chain management solutions offered through digital platforms, for instance, enable wholesale and SME clients to optimise working capital, strengthen supply chains, enhance business efficiency, and reduce operating costs.
UOB also provides UOB Infinity, a digital banking platform that helps businesses, including SMEs, streamline operations across Asean markets. The platform, currently available in Singapore, supports cash management, financial supply chain management, and trade requirements across 10 markets and is set to launch in Thailand next year. Moreover, UOB SME solutions improve financial transaction convenience with real-time interactive cash flow management.
Thailand’s robust economic fundamentals and sizable middle-class population, accounting for up to 40% of the total, serve as significant advantages, Mr Maloney said. These factors contribute positively to domestic consumption and support the growth of the country’s consumer banking sector.
UOB Group, a Singapore-based
financial institution, acquired Citigroup’s consumer banking business in 2022 across the region, including Thailand. This integration has elevated UOB Thailand to become the second-largest foreign-owned bank in the country and the second-largest subsidiary within the UOB Group.
Importantly, the bank remains committed to delivering value for its customers, partners, and communities. Following the asset acquisition, UOB Thailand expanded its retail customer base by 2.4 million. The bank’s consumer loan portfolio now represents around 40% of its total loans outstanding, with business loans accounting for the remaining 60%.
UOB Thailand is also mindful of the country’s elevated household debt levels. While the bank primarily serves mass-affluent individual customers, it ensures its financial products and services align with the Bank of Thailand’s responsible lending guidelines to help mitigate household debt, according to Mr Maloney.
Additionally, the bank is prepared to work with the central bank, the Thai Bankers’ Association (TBA), and other stakeholders to address Thailand’s household debt issue through the new debt restructuring scheme.
The Finance Ministry, the central bank, and the TBA, along with other agencies, are collaborating on implementing this scheme, which includes a three-year suspension of interest rate payments for eligible borrowers. The scheme covers three types of loans: auto, mortgage, and small business loans.
The interest payment suspension is available to vulnerable borrowers within a targeted segment, with a maximum credit line of 700,000 baht for auto loans and 3 million baht for housing and small business loans.
UOB has also provided financial support to customers affected by the pandemic, helping them navigate the crisis. The bank continues to assist clients with debt restructuring amidst the uneven recovery of the Thai economy.
FINANCE AND TECHNOLOGY LITERACY
Amidst growing concerns about household debt in Thailand, the bank has focused on improving the country’s financial literacy. UOB Thailand has implemented various programmes to educate Thais on personal finance planning and debt management.
One such initiative is the UOB Money 101: Teen Edition, a financial literacy programme aimed at the nation’s youth. Close to 2,000 lower secondary students have undergone comprehensive training in money management concepts and financial wellness principles from the fourth cohort of the programme, equipping more than 6,000 students nationwide since its launch in 2021.
With its long-standing presence in the Thai market, Mr Maloney said UOB Thailand continues to grow while providing comprehensive financial solutions tailored to all customer segments. The bank plans to expand its business in alignment with the positive momentum of Thailand’s economic growth in the coming year, he said.
As a regional bank, UOB Thailand does not compete directly with local banks. Instead, it focuses on creating greater value for all customer segments while contributing to the country’s long-term economic growth.
Although smaller than major local players in terms of asset size and nationwide network, UOB Thailand ranks seventh in the country by total assets, with 143 physical branches across Thailand. Despite this, Mr Maloney emphasised that the bank’s financial services and operations are well-equipped to meet the needs of all customer segments.
The bank’s digital banking platform, UOB TMRW, is designed to address the evolving needs and lifestyles of customers in the digital era. This platform, combined with the bank’s omni-channel approach, ensures both physical branches and digital services can effectively cater to diverse customer requirements.
Mr Maloney also highlighted UOB Thailand’s commitment to enhancing cyber-risk protection amidst the rising threat of financial scams globally. The bank has fortified its infrastructure and is developing advanced technologies to safeguard against cyber-risks. In parallel, UOB Thailand is focusing on improving technology literacy to educate consumers and raise awareness of potential threats.
Notably, the bank introduced UOB Money Lock, a security feature designed to protect customers’ deposit accounts from unauthorised online transfers. UOB is the first foreign bank in Thailand to offer such a service, Mr Maloney added.
