BANGKOK, 13 September 2012 – The Bank of Thailand (BoT) has suggested that financial institutions should revise their policies in preparation for the formation of the ASEAN Economic Community.
During a seminar entitled “Enhancing Thai Industries for the New Future under the AEC”, Dr. Veerapong Ramangkul, Chairman of the BoT, stated that the Thai financial institutions needed to speedily adjust their policies in order to minimize differences and prepare for rising competitions under the AEC.
According to him, the 10 ASEAN members have different financial policies which could lead to a conflict when the AEC is formed. The BoT chairman therefore recommended Thai financial institutions to improve their policies in conformity with those of their counterparts at the international level.
He added that the currency and capital markets will have to be adjusted as well. Furthermore, some ASEAN countries do not collect taxes in some businesses like Thailand does, such as income tax on earnings from deposit interest.
He also said the corporate tax in Thailand was still higher than other ASEAN members, and this could be a disadvantage for Thailand when the AEC is introduced in 2015.