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Financial institutions urged to resist seizure by foreign investors

MCOT, 30 September 2005

Financial institutions urged to resist seizure by foreign investors

BANGKOK, Sept 30 (TNA) - Local financial institutions need to adjust themselves to resist possible business seizure by foreign investors in a wake of the liberalization of trade with many countries in the world, according to a top banker.

Kasikornbank’s President Bantoon Lumsum said the country’s economy had gradually improved since the crisis eight years ago with the business environment and competition nature changing significantly.

Today, he said, the trade with other countries in the world market looked more difficult due to the trade liberalization. Competition had rather intensified in the production, trade, and financial sectors.

Foreign capital continued to flow in as the country is set to liberalize in many areas in the future.

Many countries had established the free trade area (FTA) with each others, resulting in entrepreneurs needing to adjust themselves for stiffer competition.

He said foreign investors wanted to have a greater foothold in the financial sector.

So, local financial institutions needed to adjust themselves since foreigners had currently spent capital colonizing countries economically, not geologically, he said. (TNA)

 source: MCOT