Local firms told to reach out ahead of AEC
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Local companies should adopt an anticipatory strategy to embrace the Asean Economic Community in 2015 by venturing into overseas markets, experts advised at a seminar yesterday.
“We still have enough time to adjust because the start of the AEC does not mean everything will change immediately,” said Chaovalit Ekabut, vice president for finance and investment and chief financial officer of Siam Cement Group (SCG).
At a seminar on the “Strategic Financial Journey for AEC” held by the Thailand Management Association, big corporations said Thai companies should seek opportunities outside the country by taking advantage of the AEC, which promises to open up trade, investment and capital.
Chaovalit said the AEC would bring in a lot of changes, especially to the finance industry that would face liberalisation of financial services.
There would also be cross trading of securities among member countries under the Asean Linkage scheme.
“The AEC will bring about free flow of capital and investment in the banking and investment industry. Companies must study this seriously in a bid to cope with this change,” he said.
SCG has been preparing for expansion for some time by investing in Asean countries.
Asean now accounts for about US$1.7 billion (Bt51 billion), or 14 per cent, of the group’s total investments. About $1 billion of that is in Indonesia alone.
However, companies will have to upgrade their management to meet international standards.
Key issues such as human resources, good governance and corporate social responsibility should also be taken into account, he added.
Tevin Vongvanich, PTT’s chief financial officer, said PTT has been active in the Asean market for many years by expanding its exploration and production business in Vietnam and Burma, which is considered the group’s second home with 20-30 per cent of its total investment.
PTT is also in the coal and oil palm plantation businesses in Indonesia and oil business in the Philippines.
