EXIM Thailand Announces Success in Hosting 12th RCG CEO Meeting, Emphasizing Government Support as Vital for Advancing Risk Insurance Solutions to Boost ESG Businesses and Foster Sustainable Future.

Dr. Rak Vorrakitpokatorn, President of the Export-Import Bank of Thailand (EXIM Thailand), announced the success of hosting the 12th Regional Cooperation Group CEO Meeting at Capella Hotel in Bangkok on November 21, 2023. The meeting marked the first gathering of member organizations after the 11th meeting in Tokyo, Japan, in 2020, with a hiatus of over three years due to the COVID-19 pandemic. Key topics discussed during this meeting centered around the significance of environmental, social, and governance (ESG) values, which are no longer seen as idealistic and unrealistic.

The uncertainty caused by the COVID-19 outbreak has prompted businesses to reconsider and apply the ESG management concept for a sustainable future, focusing more on ethical and moral values. Aspects such as sustainability and the management of climate-related risks are prominent for the business sectors, including the insurance industry, amid opportunities and risks.

During the meeting, members acknowledged the growing significance of government support in propelling businesses towards eco-friendly objectives. They expressed their dedication to addressing climate change and embracing the green transition through various forms of green financial support, such as the launch of green credit insurance products or financial support for green project finance transactions.

Additionally, members are benchmarking and supporting companies in green renewable energy, power plants, and waste management, reducing support for the most carbon-intensive industries, fostering a low carbon society and committing to net-zero targets. Anticipating a substantial rise in ESG focus and activity, members foresee emerging innovations and new client solution opportunities in the year ahead.

“All RCG members, including EXIM Thailand, are committed to expanding strong cooperation and working closely together to meet the needs of exporters who have developed supply chains across the region by combining knowledge and risk-taking capacity. This cooperation will increase RCG members’ ability to furnish their clients’ needs and deal with challenges through comprehensive services on a sustainable basis,” said Dr. Rak.

The RCG comprises 12 member organizations, including Asuransi Ekspor Indonesia (ASEI), ECGC Limited, Export Finance Australia (EFA), Hong Kong Export Credit Insurance Corporation (HKECIC), Korea Trade Insurance Corporation (K-SURE), Nippon Export and Investment Insurance (NEXI), Export-Import Bank of Malaysia Berhad (MEXIM),

Chinese Export and Credit Insurance Corporation (SINOSURE), Enterprise Singapore, Sri Lanka Export Credit Insurance Corporation (SLECIC), Taipei Export-Import Bank of China (TEBC), and EXIM Thailand.

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Mr. Pattarapong Kanhasuwan, Chairman of KASIKORN VISION FINANCIAL COMPANY PTE. LTD. (KVF), said, “KASIKORNBANK FINANCIAL CONGLOMERATE initially acquired a stake in Bank Maspion in 2017. In the latest development, the subsidiaries have acquired additional shares in Bank Maspion, increasing its stake to 84.55 percent. The valuation of Bank Maspion after the capital injection amounted to 15.441 billion Baht, increasing 8.0 billion Baht. This strategic move will contribute significantly to the continuous growth of Bank Maspion, strengthening its operations and enhancing its customer service capabilities, while fortifying KBank’s position as the controlling shareholder of Bank Maspion.”

KBank has leveraged its more than 78 years of experience in the banking business, along with its capability and expertise in financial innovations and technologies, to cement Bank Maspion’s strengths in all aspects. Such endeavors are intended to ensure that Bank Maspion becomes a “Right Financial Partner” that can provide services beyond traditional financial products in order to support the growth of customers’ businesses and facilitate Indonesia’s long-term economic growth through the implementation of business strategies that focus on three customer segments, namely corporate, SME and retail.

Corporate customer segment has exhibited bright growth prospects and is a major driver of the Indonesian economy. With that in mind, KBank intends to enhance Bank Maspion’s service provision capability and deepen client relationships in order to be a potential source of financing and offer comprehensive banking services.

For the SME customer segment, KBank has developed and improved products and services to make it easier to audit income, approve loans and lift various restrictions in order to respond to customers’ needs more quickly while also maintaining the security of related transactions. KBank is planning to offer P2P lending soon, as well.

As for the retail customer segment, KBank aims to expand its retail customer base through the design and development of various products and services, including Payroll, QRIS (Indonesian Standard QR Payment), deposit accounts, and personal loans, while introducing marketing campaigns to meet the diverse needs and behaviors of retail customers in their daily lives.

Mr. Pattarapong added that the capital injection is in alignment with the Bank’s strategy of business expansion to become A Regional Bank of Choice within AEC+3. The focus is on enhancing capabilities in financial innovations and technologies to provide services beyond banking solutions in response to current changes. KBank’s competitive advantage of a service network in key strategic areas across the region will strengthen connectivity between Indonesia and the AEC+3 market. The effort is in line with KBank’s goal of becoming the largest bank in East Java by 2027.

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