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Bangkok Post
18 hours ago
- Business
- Bangkok Post
Krungsri, MUFG View Thailand a Key Growth Market, with Opportunity for Industry Reforming
Amid intensifying global and domestic challenges, Krungsri is reaffirming its commitment to advancing Thailand's economy by deepening strategic partnerships with MUFG, clients, and partners through its three-pronged strategies for long-term success. Meanwhile, MUFG sees 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." 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.'
New Straits Times
08-08-2025
- Business
- New Straits Times
Anwar receives courtesy call from global financial giant MUFG's chairman
KUALA LUMPUR: Datuk Seri Anwar Ibrahim today received a courtesy call from Mitsubishi UFJ Financial Group (MUFG) chairman Kanetsugu Mike. In a Facebook post, the prime minister said MUFG, a leading global financial institution with a presence in Malaysia since 1957, plays a significant role in facilitating Japanese investments, particularly in the manufacturing and industrial sectors. He said, during the meeting, he had emphasised the government's priority of attracting high-quality investments, especially in high-value technology, artificial intelligence and green energy. "I appreciate MUFG's commitment, particularly its recent signing of a memorandum of understanding with the Malaysian Investment Development Authority (Mida) to accelerate investments in strategic sectors. "With Malaysia's open economic policy and long-standing ties with Japan, the government will continue to strengthen a conducive investment ecosystem," he said. Earlier today, Mida MUFG Bank (Malaysia) Bhd teamed up to accelerate high-value investments in the country. The partnership focuses on attracting global investment in semiconductors, specialty chemicals, aerospace, pharmaceuticals, medical devices, electric vehicles, digital sectors and green technology.
The Sun
08-08-2025
- Business
- The Sun
Anwar meets MUFG chairman to boost Malaysia-Japan investments
KUALA LUMPUR: Prime Minister Datuk Seri Anwar Ibrahim welcomed Mitsubishi UFJ Financial Group (MUFG) chairman Kanetsugu Mike for a courtesy visit in Putrajaya. The meeting focused on Malaysia's push for high-value investments in technology, AI, and green energy under the MADANI government. Anwar reiterated Malaysia's open economy policy and strong bilateral ties with Japan to foster a supportive investment climate. MUFG, a global financial leader in Malaysia since 1957, aids Japanese investments in manufacturing and industrial growth. The Prime Minister acknowledged MUFG's recent MoU with MIDA to fast-track investments in key sectors. - Bernama
Bangkok Post
07-08-2025
- Business
- Bangkok Post
Mitsubishi UFJ Financial urges reform of Thai industry
Mitsubishi UFJ Financial Group (MUFG), a major shareholder in Bank of Ayudhya (Krungsri), views manufacturing reform in Thailand as more critical than US tariff changes in attracting foreign direct investment (FDI). Speaking at the Krungsri-MUFG Business Forum 2025 on Tuesday in Bangkok, Kanetsugu Mike, chairman of MUFG, said Thailand is expected to post subdued economic growth in the short term amid mounting challenges such as high household debt, an ageing population, and the transition towards a digital and green economy. US tariffs would intensify the challenges facing the Thai economy and other economies around the world, he said. "In the face of these uncertainties and economic challenges, Thailand has an opportunity to reform its economy, particularly the manufacturing sector," said Mr Mike. He suggested reforming, redesigning and adopting new technologies to transition into novel industries to enhance the capabilities and competitiveness of Thailand's industrial sector. This shift should support the country's long-term sustainability, said Mr Mike. "Reform is more important than tariff rates when it comes to attracting FDI flows to Thailand," he said. "Southeast Asian nations are all on a similar level in terms of US tariffs." Foreign investors typically prioritise a country's industrial policies, investment promotion measures, and infrastructure systems when considering FDI, said Mr Mike. He said Asia-Pacific, particularly Thailand, remains a strategically vital market for MUFG. Roughly 60% of MUFG's earnings come from international markets, with 45% of that amount from Asia-Pacific. Of this amount, around half is generated in Thailand through Krungsri. According to Mr Mike, MUFG stands ready to support Krungsri and Thai customers in adopting new technologies, advancing digitalisation, and transitioning to a sustainable economy. Despite heightened economic uncertainties and challenges, MUFG has no plans to divest and remains focused on strengthening engagement with all relevant partners, he said. With a strong international ecosystem, a leading position in sustainable finance, and robust digital capabilities, MUFG is committed to advancing sustainable development and fostering economic resilience in Thailand and across the region, said Mr Mike. Kenichi Yamato, president and chief executive of Krungsri, said the bank's slower loan growth aligns with Thai economic trends. Krungsri is working with the government, the Bank of Thailand, and other stakeholders to help individuals and businesses ease their financial burdens during this period, he said. Krungsri wants to expand its social and sustainability finance portfolio to 250 billion baht by 2030, up from 220 billion, said Mr Yamato.
Bangkok Post
04-08-2025
- Business
- Bangkok Post
Krungsri hosts seminar on business and economic shifts
Entrepreneurs, investors and interested parties are invited to "Krungsri-MUFG Business Forum: Thriving To Sustainable Future", a premiere annual seminar presented by Krungsri, at Bangkok Convention Centre, 22nd floor of Centara Grand at CentralWorld, Ratchadamri Road, tomorrow, from 8.30am to 5pm. The morning session features "Krungsri ESG Awards: Minute of Changes", a business pitching competition presented by exemplary ESG-minded SME leaders who will showcase their sustainable transition plans before a distinguished panel of judges. In the afternoon, national and global leaders in finance and economics will render a series of distinguished topics in an exclusive talk, which will open with remarks by Kanetsugu Mike, chairman of Mitsubishi UFJ Financial Group. Topics include "Krungsri Sustainable and Regional Bank" by Kenichi Yamato, president and chief executive officer of Bank of Ayudhya; "Industrial Reform: Steering Thailand's Economy under Structural Disruptions" by Industry Minister Akanat Promphan; and "The Upcoming Thailand's Climate Change Act" by Phirun Saiyasitpanich, director general of the Department of Climate Change and Environment. Somkiat Tangkitvanich, president of TDRI, will touch on "Navigating Global Shifts: Strengthening Thailand's Economic Competitiveness", Mari Elka Pangestu, former managing director of Development Policy and Partnerships at the World Bank, will talk about "Capturing Regional Opportunities in a Shifting Global Landscape". The programme will proceed with a panel discussion on "Strategic Growth through Innovation in Global Sustainable Finance" and conclude with "Achieving Sustainability and Growth Amid the Current Economic Climate: A Case Study of SCG" by Thammasak Sethaudom, president of SCG. There will also be an exhibition zone featuring a wide range of business and financial innovations and solutions, aimed at empowering customers to grow their businesses sustainably and securely. There is no admission fee. To register, visit
