Thailand

With regional integration of the financial services industry drawing closer, analysts are warning Thailand’s banks to strengthen their position at home or risk being swallowed up by rivals once the Association of South-east Asian Nations (ASEAN) Economic Community is launched in 2015.

Economic growth, sound regulation and high levels of capitalisation should benefit the Thai insurance sector in 2013. Growing public understanding of the importance of insurance and government support for the industry should also aid expansion, though rising risk may impact estimates in the near term.

A massive programme of investment in Thailand’s infrastructure, designed to enhance international connectivity and competitiveness, is set to be implemented this year amid a renewed commitment to investment and regional development.

Strong domestic demand kept the wheels of the Thai economy turning in 2012 while also helping to cushion the impact of global uncertainty on exports.

A new memorandum of understanding (MoU) with China could help Thailand tackle its rice oversupply problem and may also serve to pad government coffers. However, many onlookers are sceptical about the true potential for change.

The sale of nine 3G licences in an auction in mid-October raised Bt41.6bn ($1.35bn) for Thailand’s National Broadcasting and Telecommunications Commission (NBTC), heralding the long-awaited introduction of more advanced data services in the telecoms industry. There are concerns, however, that the bandwidth prices were set too late and will not encourage competition among providers.