Thailand : Forthcoming report to chart infrastructure project funding Increased role for Securities and Exchange Commission as capital markets gain strength

Anné Schlagel (Country Director, OBG), Vorapol Socatiyanurak (Secretary-General, SEC) and Alex Gordy (Editorial Manager, OBG)

Thailand’s Securities and Exchange Commission (SEC) is taking on an increasingly significant role as it looks to ensure a balance is struck between regulating and developing the country’s fledgling capital markets, according to its Secretary-General Vorapol Socatiyanurak.

Socatiyanurak told the global publishing, research and consultancy firm Oxford Business Group (OBG) that the SEC had begun introducing reforms aimed at bringing Thailand’s securities legislation in line with international standards.

He added that the commission had opted for a proactive approach which would allow it to take advantage of the current influx of capital into Thailand and bolster efforts to carve out a niche as a regional centre. “Thailand is in a good geographical position, connecting neighbouring markets,” he said. “In our vicinity we have half of the world’s population and, with India, China and ASEAN, some of the strongest growth rates around. Thailand is the economic bridge for the whole region.”

The interview with Socatiyanurak will appear in The Report: Thailand 2012, OBG’s forthcoming guide on the country’s economic activity and investment opportunities. The Group’s report will include a detailed, sector-by-sector guide for foreign investors, together with a wide range of interviews with the most prominent political, economic and business leaders.

Socatiyanurak said the SEC recognised the importance of making funds available for projects, especially infrastructure development, since this was a key means of boosting private sector participation in Thailand’s economic expansion.

“Infrastructure funds allow the private sector to replace spending by the government which can reserve its public funding for priorities such as education system, social welfare, and public healthcare,” he said. “Thailand needs $3bn-4bn a year to develop infrastructure because of its location as an economic bridge for the region.”

He also highlighted the commission’s decision to pave the way for the introduction of real estate investment trusts (REITs) as an alternative financial instrument for developers seeking project funding. Socatiyanurak said Thailand’s healthy real estate sector could make REITs an attractive option for developers by providing them with more flexibility. “Unlike property funds, REITs allow more flexible investment and leverage,” he said. “The rules should be finalised during 2012.”

The Report: Thailand 2012 will mark the culmination of more than nine months of on-the-ground research by a team of analysts from the Group. It will provide information on opportunities for foreign direct investment into the country’s economy and will act as a guide to the many facets of the country including its macroeconomics, infrastructure, banking and sectoral developments. The report will be available in print form or online.

About Oxford Business Group
Oxford Business Group (OBG) is a global publishing, research and consultancy firm, which publishes economic intelligence on the markets of Asia, the Middle East, Africa and Latin America. Through its range of print and online products, OBG offers comprehensive and accurate analysis of macroeconomic and sectoral developments, including banking, capital markets, insurance, energy, transport, industry and telecoms. The Report: Thailand 2012 will be produced in partnership with the Board of Investment (BOI), BDO, Thanachart Securities PLC and Tilleke and Gibbins.

The critically acclaimed economic and business reports have become the leading source of business intelligence on developing countries in the regions they cover. OBG's online economic briefings provide up-to-date in-depth analysis on the issues that matter for tens of thousands of subscribers worldwide. OBG's consultancy arm offers tailor-made market intelligence and advice to firms currently operating in these markets and those looking to enter them.