Looking back, looking at the past, financial business - banking - Thai capital market Looking towards the future (Part 6)

The aftermath of the September 2549 coup d'état and the establishment of the People Power Party government. including the dissolution of the party and the establishment of the government by the Democrat Party Later, a government was established by the Pheu Thai Party. who received victory from the election Until the coup d'etat of General Prayut Chan-o-cha in 2557 still has consequences until the present. This marks a dramatic change in the political, economic and legal landscape.

After presenting my experiences in studying and working in three periods, this edition would like to enter the fourth period, 3-4. which has important events as follows:

Part 4: Recovery and moving forward: The Great Reset 2544-2553

This period is the period when the Thai economy is passing through the critical point from the Tom Yum Kung crisis. In addition, with former Prime Minister Thaksin Shinawatra assuming the position of Prime Minister in 2544 under the 2540 Constitution, different economic policies have been implemented. with an economic policy called "Thaksinomics" which has changed the structure of the Thai economy a lot. Many laws have been passed, many new financial institutions have been established. and in the same period Thailand has set monetary policy. Financial Institution Supervision Policy and exchange rate policy Including increased financial liberalization.

In the financial dimension, it is considered that the 3rd century, or 2544-2553, was the era of modern banks that transcended the world and crossed borders. together with the recovery of the world economy and trade, The export and tourism industries are important mechanisms or cogs of the Thai economy. causing the baht to strengthen in value Fluctuations in the world economy, also known as The Hamburger Crisis in 2551 also had a negative effect on the Thai economy. And the important thing is The coup d'etat of the government of former Prime Minister Thaksin Shinawatra when he returned to be Prime Minister for the second time in 2.

After the election Former Prime Minister Thaksin's People Power Party gained a majority, with Samak Sundaravej becoming Prime Minister. and later the People Power Party was dissolved. causing the Democrat Party to form the government And after the election, the Pheu Thai Party became the government again by Ms. Yingluck Shinawatra before there was another revolution in 2557 by General Prayut Chan-o-cha.

During the period 2544-2553, there were financial transactions, taxes and capital markets and various policies. Important things that happened during that time The event can be summarized as follows.

1. Investing abroad Through FiF mutual funds

2.Providing tax benefits to RMF and LTF funds

3. Privatization of state enterprises such as PTT, Airports Authority of Thailand, MCOT Company. These 3 organizations were listed on the Stock Exchange of Thailand, as for CAT, TAT and Thailand Post. Even with privatization, it has not been able to be listed on the Stock Exchange of Thailand until now.

4. A capital market development plan is prepared.

5. Establishment of the Thailand Futures Exchange

6. There is a tax reduction to stimulate the capital market by reducing corporate tax from 30% to 25% for companies that are listed on the stock exchange and for companies that are newly listed on the stock exchange.

7. In 2546, Thailand was able to repay all IMF debt. The Vayupak Fund was established as an alternative for the people and to raise funds from the money market, which has high liquidity, with a 10-year project with an initial credit limit of XNUMX billion. baht

8. In addition, Thailand has continued to strengthen Thai banks by entering the second phase of compliance with the BIS supervision guidelines.

9. More banking business licenses have been issued, resulting in more banks in the system. and as a result, it completely ended the business of the finance company. The Islamic Bank of Thailand was established. and establish a bank for small and medium sized enterprises.

10. There is government reform, bringing more electronic systems and technology to use in work.

11. In the year 2547, there was a merger of three banks and financial institutions, namely the Industrial Finance Corporation of Thailand to merge with the Thai Military Bank and DBS Thai Thanu Bank Company Limited, instead of joining with Thai banks. Bank, which was signed on January 3. I was also involved in the merger of these three financial institutions.

12. In the year 2547, the Thailand Agricultural Futures Market was established. Open for commercial banks to do factoring business. National payment system is established.

13.At the beginning of 2549, there was speculation about the weakening of the baht and the dollar. A strong currency is caused by the weakening of the dollar. The influx of foreign capital to purchase shares of the Shin Corp Group worth 73,000 million baht, including money coming in to invest in Bank of Ayudhya of the GE Group, the government is trying to prevent speculation. In December In 2549, measures were issued that required the maintenance of short-term cash inflow reserves. (Unremunerated Reserve Requirements (URR))

It requires financial institutions that buy or exchange foreign currency into baht to keep that foreign currency as a reserve in the amount of 30% of the amount exchanged and remit it to the bank. Bank of Thailand every day But the said measure was relaxed after it was announced. and this measure was canceled in March 2551.

14. During 2549, Shincorp shares were sold to SingTel and Temasek, which caused a political conflict regarding taxes on sales of shares. Until it led to the September 2549 Revolution, which was the first coup d'état 15 years after 2534, which affected Thai politics and economy in the following period.

15. The Deposit Protection Act was issued on August 11, 2551, which allows deposits to be protected up to a specified amount. which the Deposit Protection Agency has taken more than 30 years to bring into force

16. Since 2550, Thai commercial banks It may be both medium and small, such as the Bank of Ayudhya. Thai Military Bank, Thanachart Bank and Thai Bank They are all ready to allow foreigners to come and hold shares. Whether it is the GE group that has come to invest in Bank of Ayudhya, ING, which invested in Thai Military Bank, and Nova Scotia Bank of Canada, which invested in Thanachart Bank. Including having CIMB Bank come to hold shares in Thai banks. I was involved in GE's M&A with Bank of Ayudhya. Nova Scotia Bank bought shares in Thanachart Bank. and mergers and acquisitions

The aftermath of the September 2549 coup d'état and the establishment of the People Power Party government. Including the dissolution of the party and the establishment of the government by the Democrat Party Later, the Pheu Thai Party was established. who received victory from the election Until the coup d'etat of General Prayut Chan Ocha in 2557 still has consequences until now. This marks a dramatic change in the political, economic and legal landscape.

In the next episode, I will bring back memories from the period before the revolution by General Prayut Chan-o-cha, including how I began to attend various popular courses. writing a book related work To record it as a memory and give it as a thought for readers.