THE PERFECT COMBINATION
TBY talks to Rapee Sucharitakul, Secretary-General of the Securities and Exchange Commission (SEC), on the SEC's establishment, Thai capital markets, and the AEC.
BIOGRAPHY
Rapee Sucharitakul is the Secretary-General of the Securities and Exchange Commission (SEC) in Thailand. He is also a committee member of the State Enterprise Policy Committee. Sucharitakul received his bachelor’s degree in law from the University of Essex in the UK and a master’s in commercial law from the University of Bristol, UK.What were the goals behind the establishment of the SEC in 1992?
The establishment of the SEC was a landmark development because it was the first time we had an independent organization exclusively take care of Thailand's capital markets. The way in which our commission is structured is quite a departure from normal government administrations in the sense that we tried to have a combination of private-sector representatives and government officials on our board. It was with the view that capital markets are dynamic and we need to be able to keep up with all the changes and developments that can come from all sides. Over the years, we have tried to remain close to the private sector to understand the landscape of where we are going and also react to the changing environment throughout this period, both good and bad.
What are some of the biggest challenges in ensuring an efficient and transparent capital market in Thailand?
One of the biggest challenges is promoting effective corporate governance practices in the market. Linking back to the view by many financial analysts that the 1997 financial crisis started in Thailand, the crisis had its roots in the failure of corporate governance, particularly in the financial sector. That is one area in which we are doing plenty of reforms on many fronts. One of the most successful developments has been the creation of the Thai Institute of Directors, which helps develop the professional knowledge and skills necessary for directors of listed companies. It is important to universalize standards and get people to understand what corporate governance is. There have also been many rules, laws, and regulations put in place; for example, the requirements on independent directors, related party transactions, disclosure, and accounting standards. We have come a long way in creating awareness and the practice of corporate governance. Under the ASEAN Corporate Governance Scorecard initiative, for example, last year, out of the top-50 companies that achieved the highest rankings across ASEAN, Thailand had 23 companies there and two were among the top five. It is an achievement we are proud of. Now the key issue is moving from basic corporate governance to issues such as ESG and anti-corruption, which we also play a major part in. We have Anti-corruption Progress Indicators initiative to encourage listed companies to put in place serious anti-corruption measures, and so far we think there has been satisfactory improvement in this area. Another big challenge for Thai capital market deals with the investment side. As types of financial products offered in Thailand are still quite limited, we are working to allow investments in things like hedge funds, high-yield bond funds, and leverage funds, so investors will have greater choice for their investments.
What are the challenges from a regulatory point of view regarding AEC?
The AEC is not yet a single market nor is it aiming to be: It is not the EU. It is more of a loose form of cooperation whereby we try to have more harmonized rules and regulations. But we will not have one set of rules and regulations issued by a central authority that covers everyone. We are not talking about single currencies, visas, or passports. It involves cooperation in trying to promote ourselves as one community to the world rather than a single platform: That is the key difference. However, Thailand's positioning in the neighboring countries—Laos, Cambodia, Myanmar, and Vietnam—should be noted. Vietnam has already grown at a rapid pace, but for the other three, there are quite a few challenges to tackle for further capital market development. At the same time, all these countries need a great deal of funding as they look to the future. Things like infrastructure funds will likely play a strong role both domestically and regionally. I think this will be one of the key issues for people to keep track of.
THE PERFECT COMBINATION
TABLE OF CONTENTS
Review: Diplomacy
The Times are Changing
The West may have taken a dim view on the 2014 coup, but China has been less judgmental about Thailand's domestic policy and the two countries have grown closer over the past couple of years.The West may have taken a dim view on the 2014 coup, but China has been less judgmental about Thailand's domestic policy and the two countries have grown closer over the past couple of years.
read articleGuest Speaker
HE Maithripala Sirisena, President, Democratic Socialist Republic of Sri Lanka
TBY talks to HE Maithripala Sirisena, President of the Democratic Socialist Republic of Sri Lanka, on celebrating 60 years of relations with Thailand, boosting bilateral trade, and potential opportunities with the AEC.
read articleFocus: Special Economic Zones
Zone Home
With numerous upcoming major trade deals like the TPP and CAFTA, in addition to Thailand joining the ASEAN Economic Community, the country is developing a host of strategically located and incentivized SEZs to take advantage of the upcoming opportunities.
read articleFocus: Auto Sector
Driving Force
A combination of slower global economic growth and weaker domestic purchasing power suggests that Thailand's renowned automotive sector is heading for flat growth in 2016, thereby encouraging the government to promote cutting-edge innovation across the industry.
read articleFocus: Gems & Precious Stones
Shine Bright
As a key driver of the economy, Thailand's vast manufacturing sector comes in different shapes and sizes—and colors, for that matter. One segment to have really emerged as a sparkling export opportunity over the past two decades has been the country's gems and precious stones industry.
read articleInterview
Dr. Pichet Durongkaveroj, Minister, Science and Technology
TBY talks to Dr. Pichet Durongkaveroj, Minister of Science and Technology, on the initiatives to boost innovation in the country, facilitating greater private investment, and fostering mutually beneficial partnerships with countries.
read articleFocus: E-Commerce
Down the Wire
In 2014, when Chinese e-commerce giant Alibaba made headlines for listing the largest global IPO in history (USD25 billion), many had come to recognize that the industry, which was typically dominated by Silicon Valley heavyweights, was gravitating drastically eastward.
read articleInterview
Anantachai Kunanantakul, Chairman & CEO, Siam Eastern Industrial Park (SEP)
TBY talks to Anantachai Kunanantakul, Chairman & CEO of Siam Eastern Industrial Park (SEP), on the development of the park, the benefits on offer, and plans to further develop the country's eastern seaboard.
read articleInterview
Kan Trakulhoon, Head of Working Group , Eastern Economic Corridor (EEC)
TBY talks to Kan Trakulhoon, Head of Working Group of the Eastern Economic Corridor (EEC), on the background of the EEC project, the government's push to build up infrastructure in the country, and his projections for the coming year.
read articleFocus: Water Shortage
A Drop At a Time
In 2016, many Thai's across the Kingdom will be looking out for weather forecasts—rather than economic ones—as the key indicator for the country's economic sustainability. Water is becoming an increasingly precious global commodity as populations and temperatures increase.
read articleReview: Education
Many Brains to Gain
Thailand has long suffered from an ineffective education system, with a large number of dropouts and graduates not equipped to deal with the demands of the 21st century. However, the government has been taking actions in a bid to get serious about much-needed education reform.
read articleInterview
Weerasak Kowsura, Board Chairman, Thailand Convention & Exhibition Bureau (TCEB)
TBY talks to Weerasak Kowsura, Board Chairman of the Thailand Convention & Exhibition Bureau (TCEB) & Board Chairman of Designated Areas for Sustainable Tourism Administration (DASTA), on the country's booming MICE industry and the benefits of community-based tourism.
read articleInterview
Proudputh Liptapanlop , Executive Director, Proud Real Estate
TBY talks to Proudputh Liptapanlop and Pasu Liptapanlop, Executive Directors of Proud Real Estate, on the company's development plans for Hua Hin, the prospects of the industry, and their expectations for the future.
read article