Tokyo-Mitsubishi UFJ also keen on Asean
The focus of the global economic
era is expected to return to Asia by the mid-21st century, with the continent's
economy gradually increasing to contribute more than half the world's gross
domestic product by then.
Asia accounted for most of the
global GDP until the mid-19th century, after which the momentum shifted to
Europe and the US.
The renewed Asian era is widely
expected to resume from 2015, when it is forecast to account for 33% of the
world's GDP and then rise to 52% by 2050, says Takashi Morimura, deputy
president of the global business unit of Bank of Tokyo-Mitsubishi UFJ Ltd.
"Asia's economic growth has
attracted capital investment from all parts of the world. Moreover, the
region's consumption is now more important for the global economy than its role
as a manufacturing base," he told the Bangkok Post, the first time the
bank has talked to the Thai media.
Given the changing global
economic landscape _ with the unresolved EU debt crisis and the fragile
recovery of the US economy _ the leading Japanese bank plans to play a greater
role in Asian business.
The Asean market is another key
area set for high growth with the formation of the Asean Economic Community
(AEC) in 2015, and Thailand will still be a regionally important country.
Japanese banks have kept a
low-profile in Thailand despite their long operation in this country.
Bank of Tokyo-Mitsubishi UFJ is
the largest financial institution in terms of assets in both Japan's banking
industry and foreign banks in Thailand.
Its Bangkok branch has officially
operated in Thailand for 50 years. It is also the oldest Japanese bank here.
The Bangkok branch of Yokohama Special Bank was opened in 1936 and closed in
1954, and the former Bank of Tokyo was designated to take over its business.
In 1996, Bank of Tokyo-Mitsubishi
was established after the merger of Mitsubishi Bank and the Bank of Tokyo. In
2006, the Bank of Tokyo-Mitsubishi Ltd and UFJ Bank Limited merged to form Bank
of Tokyo-Mitsubishi UFJ.
"Thailand is like a second
home for Japanese investors since a lot of leading companies have been
investing in the country for a long time. The bank has also followed them to
provide financial support in the country," said Mr Morimura.
Even though there will be greater
business opportunities in other Asean countries with the advent of the AEC,
most Japanese investors remain committed to Thailand.
Bank of Tokyo-Mitsubishi UFJ has
a presence in seven Asean countries with the exception of Laos, Malaysia and
Brunei.
At its Bangkok branch, about half
of the 213 billion baht in assets are contributed by Japanese customers in
three core business sectors: automobiles, electronics and the chemicals.
Indonesia is another attractive
Asean country for Japanese automakers due to its growing domestic consumption
and large population. But Japanese carmakers will continue to focus on Thailand
due to the country's advantages in the supply chain and skilled labour.
"If we look at domestic
consumption, Indonesia is the largest market. On the other hand, Thailand is
fully connected to the global supply chain. In terms of exports and global
manufacturing, Thailand is very important," said Mr Morimura.
However, the bank has no plans to
open more branches in Thailand despite being permitted to introduce others by
the Bank of Thailand in accordance with the country's financial-sector master
plan.
Focusing on the wholesale banking
business in Thailand, the bank believes branch expansion is not a necessity.
Instead, the bank will concentrate on information technology and online service
development.
With only one branch, the bank
plans to maintain its position as the No. 1 foreign bank in Thailand.
Bank of Tokyo-Mitsubishi UFJ,
under the Mitsubishi UFJ Financial Group, also intends to retain its leading
position in Asia with a strong capital and liquidity base, long-time experience
and strong networks, as well as good relationships with both Japanese and
non-Japanese customers in the region, said Mr Morimura.
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