SCB: Small financial institutions may have less security after AEC

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BANGKOK, 4 June 2012  – The Siam Commercial Bank (SCB) has speculated that after the establishment of the ASEAN Economic Community (AEC), many small and medium financial institutions will have less security and may be bought out by bigger companies. 

SCB Executive Vice President Sutapa Amornvivat has revealed that after the ASEAN integration, some small and medium financial institutions as well as transport and logistics companies will be at risk of being taken over or having to join other companies for survival.

Ms Sutapa stated that some small- and medium-sized banks have already formed joint-ventures with multinational companies; while big banks have begun opening branches in other ASEAN nations.

The executive vice president said medical service, health tourism, and logistics will grow well after the AEC but they have to find alliances to help reduce production costs. She stated that the agriculture sector will have ample opportunity to invest abroad, where labor costs are cheaper.

Ms Sutapa further added that shopping malls and restaurants are the sectors that are still not ready for the AEC, as they have to establish their brands before investing abroad.