Krungsri, MUFG View Thailand a Key Growth Market, with Opportunity for Industry Reforming
Speaking at the Krungsri–MUFG Business Forum 2025, held on occasion of Krungsri's 80th anniversary, Kenichi Yamato, president and CEO of Bank of Ayudhya (Krungsri) said that 'In today's environment, marked by trade tensions, climate changes, demographic shifts, and geopolitical instability, collaboration at both national and regional levels, presents an opportunity for Thailand to rise above uncertainty. For over 80 years, Krungsri has stood by Thai businesses and communities—navigating challenges, embracing transformation, and growing together. In strategic partnership with MUFG, we are committed to driving sustainable growth across the region and enabling our customers to achieve long term success amid uncertainty.
The day-long event opened with the final round of the Krungsri ESG Awards transition plan presentation and the Krungsri ESG Academy, recognising forward-thinking efforts in sustainable business. These initiatives reflect Krungsri's commitment to empowering enterprises with innovative financial tools and a comprehensive approach to sustainability that extends beyond conventional ESG frameworks. Through the Krungsri ESG Showcases, Thai companies demonstrated how they are successfully embedding sustainability into core operations.
Krungsri's senior executives also delivered a series of ESG talks outlining the bank's roadmap to support customers in their transition to greener and more socially responsible practices. The presentation of ESG Academy Certificates reinforced Krungsri's dedication to equipping businesses with the knowledge, frameworks, and financial support to make sustainability an integral part of their strategies.
In the afternoon, the Business Forum under the theme 'Thriving to Sustianable Future' featured keynote speeches and panel discussions addressed critical issues including industrial transformation, climate change legislation, and regional competitiveness. Among the notable speakers were Mr Kanetsugu Mike, Chairman of MUFG.
In his opening remarks, Mr Mike commended Krungsri on its 80-year journey, noting that the 12-year partnership between Krungsri and MUFG has grown into a strong, family-like relationship. He reaffirmed MUFG's commitment to sustainable development and regional resilience, emphasizing that strengthening the Asia-Pacific business, with Thailand as a strategic hub, remains a top priority under MUFG's Medium-term Business Plan (FY2024–FY2026).
Mr Kanetsugu Mike, Chairman of MUFG, also underlined the importance of long-term structural transformation, saying that 'Tariffs remain significant for foreign investors, but many are now looking beyond tax structures,' Mr Mike said. 'The focus has shifted to industrial policy and infrastructure. Thailand's strong manufacturing base and diverse capabilities position it well. This is an opportunity to view tariff pressures as a catalyst for deeper structural reform.'
'MUFG continues to view Thailand as a key growth market,' said Mr Mike. 'MUFG's global network and M&A expertise can help Thai businesses navigate tariff-related challenges through strategic restructuring and business matching.'
MUFG's revenue from international banking business represents at 60%, of which 45% contributing from Asia-Pacific. Of which 50% of the regional income come from the Thai market or Krungsri.
'MUFG's approach to green transformation emphasises engagement over divestment,' Mr Mike added.
'We do not believe in abandoning carbon-intensive businesses,' Mr Mike said. 'Instead, we engage and help them transform into carbon-neutral companies. Each region such as Asia and Europe, has different needs, so our policies must be tailored accordingly.'
MUFG is also investing in data centers to support AI development, viewing it as a long-term strategy to enhance digital infrastructure across Asia.
Mr Akanat Promphan, Industry Minister, highlighted the intense and rapid changes occurring in the world and proposed a strategy for industrial reform to drive Thailand's economy forward, rather than merely reacting to challenges. He emphasised the need to address low-quality businesses, such as 'zero-baht tour businesses,' and the import of substandard goods. At the same time, he advocated for promoting Thai products and adapting to new global trade regulations. The Ministry is committed to fostering innovation and high-value industries, as well as adjusting investment promotion measures and the national energy plan to build a future of rapid and stable growth."
Dr.Phirun Saiyasitpanich, Director General of the Department of Climate Change and Environment, provided an update on the draft Climate Change Act, which is Thailand's first law directly related to carbon. The Act aims to facilitate a fair transition to a low-carbon economy. Key provisions include setting a carbon neutrality target by 2050 (Net Zero GHG by 2065), mandatory greenhouse gas emissions reporting for large legal entities, and the establishment of carbon pricing mechanisms such as an Emissions Trading System (ETS) and carbon tax. It also includes the development of a carbon market and a climate fund to support business transitions.
Dr. Somkiat Tangkitvanich, President of the Thailand Development Research Institute (TDRI), analysed three key factors impacting the Thai economy: a new wave of trade wars, disruptions from AI, and climate change. He pointed out that the 19% U.S. tariff rate will reduce global trade and pose challenges for Thai exports, while warning of an influx of Chinese goods. He recommended that Thailand open up its economy, reduce high import quotas and tariffs, enforce product standards, and combat illegal trade to enhance competitiveness. Additionally, he emphasised the urgency of adapting to climate change impacts and encouraged businesses to adopt environmentally friendly practices.
Mari Elka Pangestu, Indonesian President's Special Envoy and former MD of Development Policy and Partnership at World Bank, addressed global uncertainties, including the decline of multilateralism and ongoing trade wars. She analysed the impact of the Trump 2.0 tariffs on the ASEAN economy and raised concerns about rules of origin and the 'laundering' of Chinese goods. She advised ASEAN to avoid retaliation against trade policies and instead pursue constructive bilateral negotiations with the United States. She also emphasised the importance of reaffirming multilateralism and strengthening resilience both domestically and regionally through structural reforms and deeper economic integration.
During the discussion panel under the topic Strategic Growth through Innovation in Global Sustainable Finance, panelist share their perspective for forward thinking on how Thai and global corporate drive sustainability through sustainable finance.
Mr Hideaki Takase, CSO & Chief Sustainability Officer of MUFG, stated: 'MUFG is committed to a strategy that drives social and environmental progress, aiming for carbon neutrality by 2050 through both direct and indirect financing. Achieving carbon neutrality for the bank depends on reducing emissions from its clients, which is why we prioritise communication with governments and support clients in their transition. MUFG has set a target to provide ¥1 trillion in sustainable finance by 2030, with approximately 20% focused on ASEAN.'
Mr Prakob Phiencharoen, Head of Corporate and Investment Banking Group, Bank of Ayudhya (Krungsri), added: 'Demand for ESG loans in the Thai market is growing, with sustainable finance now accounting for 6% of the bank's total lending. The main challenges include cost-benefit analysis, the ability to finance new technologies, and most importantly, executive commitment. Krungsri continues to transform its organisation toward Net-Zero, driven by leadership commitment, and emphasises that ESG is not optional, it is a strategic path to enhance competitiveness.'
Mr Paroche Hutacharoen, Bond Market Advisor, Public Debt Management Office (PDMO), Ministry of Finance, said: 'The PDMO plays a proactive role in addressing climate and social challenges by issuing sustainability bonds. Nearly THB 500 billion in Sustainability Bonds have been issued for social and environmental projects, and we've pioneered Sustainability-Linked Bonds (SLBs) with clear KPIs, such as a 30% reduction in GHG emissions by 2030. Success stems from creating win-win scenarios for all stakeholders, building bond scale, and maintaining liquidity to attract investors. The PDMO also supports other state enterprises in these efforts.'
Mr Colin Chen, Head of ESG Finance, Asia Pacific, MUFG Bank, concluded the discussion by emphasising the urgency of collective action and the need to act now, stressing that successful solutions depend on active engagement and listening to clients
Mr Thammasak Sethaudom, President and CEO of Siam Cement Group (SCG), graciously shared SCG's strategy for sustainable growth amid economic slowdown and tariff barriers. He emphasised that 'green' projects must be competitive by balancing environmental goals with cost reduction. SCG has invested in carbon-reducing technologies such as bioenergy and low-carbon cement production, which help lower greenhouse gas emissions while also cutting costs. He also highlighted the importance of adapting to climate change impacts and adopting a participatory approach by supporting SMEs in the supply chain in their transition toward sustainability."
Mr Yamato reflected on the bank's evolution from its roots in Ayutthaya to becoming Thailand's fifth-largest financial institution, serving more than 19 million customers across ASEAN.
'Krungsri was born in Ayutthaya and has weathered major economic challenges, including the Tom Yum Goong financial crisis and the COVID-19 pandemic, which tested the resilience of economies and societies worldwide,' he continued. 'These experiences have strengthened our ability to navigate complex challenges such as geopolitical tensions, rapid technological change, and climate risks.
'To thrive in today's fast-changing environment, Krungsri will focus on three key strategies for long-term success,' Mr Yamato explained. 'First, we are strengthening our core banking operations and deepening regional partnerships by leveraging MUFG's global network to support national priorities and unlock cross-border growth across ASEAN. Second, we are driving digital innovation through investments in AI-powered technologies and next-generation platforms that extend beyond traditional financial services, underpinned by a robust risk management framework to ensure sustainable customer growth. Third, we are advancing sustainability by embedding it into every part of our business. With a net-zero emissions target by 2030, Krungsri is committed to expanding financial support for social and sustainable finance projects to 250 billion baht by 2030, reinforcing our role in Thailand's green economic transition.'
Mr. Yamato added, 'Today's event reflects our unwavering commitment to walking alongside our customers on their journey of growth and transformation. By fostering strategic partnerships, driving continuous innovation, and embracing sustainability in all its forms, not just ESG, we aim to empower businesses to succeed amid an ever-evolving and challenging global landscape.'
'Thailand is a very important market for MUFG,' Mr Mike said. 'Our partnership with Krungsri enables us to support sustainable growth in a healthy way.'
'As Krungsri turns 80, we remain deeply committed to growing alongside Thai society, industries, and our customers,' Mr Yamato added. 'We believe in Thailand's future and will do our utmost to help it thrive.'
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