Connect with us

Banking

Thailand’s four challenges : Debt, inequality, plastics and climate change

Thais tended to get into debt faster, for longer and for higher amounts. Indebtedness starts as soon as they begin to work at age 25 and can increase until 56 years old.

Avatar

Published

on

Bank of Thailand Governor Veerathai Santiprabhob, in his speech entitled “Formulating for the Future of Corporate Governance”, delivered at the Finance and Beyond National Director Conference 2019 in Bangkok (July 24th), said Thailand faces four challenges that require good governance in businesses to address.

He said that Thailand has a high level of income inequality, citing statistics from the Office of the National Economic and Social Development Council which reveal that the richest 10% of the country’s population have incomes that are 19 times higher than the poorest 10%, adding the former own over 61.5% of the country’s land while the latter barely own 0.07%.

Bank of Thailand Governor Veerathai Santiprabhob
Bank of Thailand Governor Veerathai Santiprabhob

Reckless spending and the debt trap

The BOT governor went on to say that a lot of Thais are still trapped in a cycle of debts with 78.7% household debts to GDP, which was partly resulted from businesses that encourage consumers to resort to reckless spending.

Dr. Veerathai referred to research, from the Puey Ungphakorn Institute for Economic Research, which shows that Thais tended to get into debt faster, for longer and for higher amounts. Indebtedness starts as soon as they begin to work at age 25 and can increase until 56 years old.

Some are still in debt even in retirement. The average debt has risen from about Bt70,000 per person in 2010 to about Bt150,000 in 2017.

Worsening climate change

Dr. Veerathai also said that worsening climate change could also pose a threat to Thailand. Many industries may be required to close down for environmental reasons, and new diseases will emerge because of ecological adaptation to global warming.

Finally he mentioned plastic waste, only 9% of which is appropriately recycled, citing the Great Pacific Garbage Patch phenomenon covering an area of ocean that is three times larger than the size of Thailand.

To deal with the problem, the BOT governor emphasized the importance of conducting sustainable business with good governance at its core, citing three global incidents allegedly caused by irresponsible businesses practices, namely the forest fires in California, the Brumadinho Dam collapse in Brazil and the spread of cash back mortgages, which badly affected people in Thailand.

Source link

Continue Reading
Advertisement Load WordPress Sites in as fast as 37ms!
Comments

Banking

Less Than Zero: The New Normal for Interest Rates?

Huge global capital flows and prolonged ultra-low interest rate policies of advanced nations have made it harder for emerging economies to protect their financial system

Avatar

Published

on

Back in the 1980s and 1990s, financially sound governments had to pay interest rates of 6-8 percent in order to borrow.

(more…)

Continue Reading

Banking

Innovative Asian Blockchain Companies Who Are Taking Over

The acceptance and regulation of cryptocurrency in Asia may be polarised depending on location, but one thing is for sure. Companies spanning the whole of Asia value blockchain technology and are putting it to good use.

Avatar

Published

on

Asia has always been at the forefront of technological innovation, and that is no different when it comes to blockchain technology. What was primarily developed to make peer-to-peer payments easier has now merged into new areas.

(more…)

Continue Reading

Banking

Building ASEAN Banking Cybersecurity resilience

Technological revolutions come with their own form of risk: cyber risks. The more “digital” banks become, the more channels for potential points of attacks from cyber criminals, who are constantly evolving to exploit new loopholes.

Boris Sullivan

Published

on

Technology and the internet have undeniably become integrated into our daily lives. Customers’ behaviors continue to evolve and adapt to the technological progresses. In response, new technologies are developed to serve and accommodate customers’ ever-evolving needs.

(more…)

Continue Reading

Most Read

Upcoming Events

Mon 21

34th International Conference on Dental and Oral Health

October 21 @ 9:00 am - October 22 @ 5:00 pm BMT
Nov 06

2nd World Congress on Pediatrics and Child care

November 6 @ 8:00 am - November 7 @ 7:00 pm BMT
Radisson Hotel Narita
Tomisato-shi
Nov 07

3rd World Congress On Gynecology, Obstetrics & Reproductive Health

November 7 @ 9:00 am - November 8 @ 4:00 pm BMT

Press Release

Subscribe via Email

Enter your email address to subscribe and receive notifications of new posts by email.

Join 11,595 other subscribers

Trending