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After a short-lived slowdown related to political uncertainty, economic weakness and the ending of a first-time car-buyer scheme, the insurance sector in Thailand is beginning to grow again at a healthy pace. Given the relatively low penetration rate, the increasing incomes in the country and the ageing population, it is expected that the sector will soon expand again at or near its historically fast rate. Regulatory changes are helping to improve the safety and soundness of the sector, and slowly allowing for more foreign participation. However, high household debt remains a concern and could stand in the way of a rapid recovery, while consolidation remains a work in progress. Some regulatory fixes and additional liberalisations are needed if the number of insurers is to be reduced. This chapter contains an interview with David Korunic, CEO, Krungthai-AXA Life Insurance.

The Thai market consistently outperforms many of its neighbours in terms of trading volumes. In January 2016 over $23bn of shares changed hands on the Stock Exchange of Thailand, compared to some $9bn on Bursa Malaysia, over $4bn on the Indonesia Stock Exchange and $16bn on the Singapore Exchange. Thailand is transforming from a large but secondary player in the region to a market of focus. The high level of turnover and the steady corporate activity are generating considerable interest and the right conditions for rapid development. The country has already become the market of choice for issuers in the Mekong region, and is starting to get noticed by the international investment community as being more than just a small local market. If reforms continue, and if the new government is able to keep the markets open and fair, Thailand may well find itself playing a new and significant role in the development of the ASEAN region’s capital markets. This chapter contains interviews with Kesara Manchsree, President and CEO, the Stock Exchange of Thailand; and Rapee Sucharitakul, Secretary-General, Securities and Exchange Commission; and a viewpoint from Chaipatr Srivisarvacha, CEO, KT ZIMCO Securities Company.

Thailand’s banking sector remained resilient in 2015 despite challenging macroeconomic conditions, including slowing demand in China and high levels of consumer debt. Loan growth continued, despite moderating from the double-digit highs of previous years, and loan capital improved even as the non-performing loan (NPL) ratio rose. Operating profits of banks simultaneously grew, although net profits declined due to increased provisioning. As of December 2015 there were 19 commercial banks, 12 full branch foreign banks, two finance companies and three credit foncier companies registered in Thailand. An increase in cross-border transactions has raised the potential for regional expansion of domestic banks, and a number of Thai financial institutions have announced plans to expand operations. This chapter contains interviews with Chartsiri Sophonpanich, President, Bangkok Bank; Teeranun Srihong, President, Kasikorn Bank; and Darren Buckley, Country Head, Citibank.

In what became known as a foundation speech for the idea of the sufficiency economy, in December 1997, the king said that what was important was not being a “tiger” but having “a sufficient economy” to take care of the whole population. The sufficiency economy places sustainability at the very core of its thinking, advancing a different approach from that of short-term, shareholder value-centred ideas of economic development. The take-up of this philosophy has also placed the country at the forefront of studies in sustainability, while also providing the world with some remarkable blueprints and success stories. This chapter contains a viewpoint from Kasem Watanachai, Privy Counsellor.

Although buoyed by decades of steady expansion, Thailand – South-east Asia’s second-largest economy – saw growth falter in recent years in the wake of political unrest and challenging external conditions. However, falling global oil prices combined with stimulus packages benefited the economy and spurred a moderate recovery in 2015. The government is set to launch 20 infrastructure projects before 2018, covering rail, roads, air transport and ports, as part of an investment plan running until 2020. Public-private partnerships are expected to comprise 20% of the plan’s budget. Concerns about China and depressed commodities prices will continue to weigh on economic growth, although Thailand remains well positioned to manage these challenges, with robust international reserves and rising government spending expected to support and sustain recovery into 2017. This chapter contains a viewpoint from Veerathai Santipraphob, Governor, Bank of Thailand.

Trade and investment have witnessed robust growth in Thailand over the past 30 years, as rapid industrial development led manufacturing to overtake agriculture as a primary economic engine. This has had a dramatic impact on exports, with the country rising to become a major regional exporter of electronics, automotive parts and food products. Trade relations have also expanded in recent years on the back of improved bilateral relations with China and the US: Thailand is poised to enter into a major global free trade agreement with each – respectively, the Trans-Pacific Partnership (TPP) and the Regional Comprehensive Economic Partnership (RCEP). Despite uncertainty regarding the country’s political future, as well as rising concern about falling regional competitiveness, particularly in light of the ongoing process of AEC integration, cautious optimism prevails in Thailand. This chapter contains viewpoints from Julie Bishop, Australian Minister for Foreign Affairs; and Dmitry Medveded, Prime Minister of Russia; and interviews with Cecelia Malmstrom, European Commissioner for Trade; and Thongsing Thammavong, Prime Minister of Laos and 2016 ASEAN Chair.