EXIM Thailand has collaborated with MARSH PB, a leading global insurance brokerage and risk advisory firm, to host a seminar titled "Geopolitical Perspective: From Tension to Solutions," attended by more than 100 Thai entrepreneurs at St. Regis Bangkok Hotel on October 30, 2024. The seminar aimed to enhance understanding of current geopolitical conflicts and promote the use of financial tools, including credit facilities and risk hedging instruments, to support the global expansion of Thai trade and investment. By providing insights, entrepreneurs can develop adaptable business plans and pursue sustainable growth. Dr. Paopoom Rojanasakul, Deputy Minister of Finance, presided over the opening ceremony while Ms. Serene Soo, Managing Director of Political Risk and Structured Credit Leader - Asia, MARSH Credit Specialty, Singapore, Mr. Piyapak Sricharoen, Director-General, Department of East Asian Affairs, Ministry of Foreign Affairs, Mr. Kriengkrai Thiennukul, President of the Federation of Thai Industries, and Dr. Rak Vorrakitpokatorn, President of Export-Import Bank of Thailand (EXIM Thailand) participated as guest speakers.
Dr. Paopoom Rojanasakul, Deputy Minister of Finance, said that today's rapidly changing global context has principally stemmed from the vulnerability of global economies, leading to broad-ranging volatility, particularly in geopolitics, which has posed real risks to global trade. Exporters should thus prepare to cope with the situation and know how to hedge such risks comprehensively, as geopolitics has profound impacts on global security, including in trade and investment sectors. Ongoing global tensions like the prolonged Russia-Ukraine conflict and crises in the Middle East have disrupted multiple aspects of international trade, including rising transport costs due to maritime route disruptions, as well as increases in energy and commodity prices. Furthermore, the upcoming US general election will significantly influence global geopolitical direction and accordingly shape the overall global trade and investment landscape. The US-China trade and tech conflicts have derailed global supply chains, prompting companies to reshore or relocate production to politically neutral countries to avoid impacts from ongoing global trade wars. The US political policies will continue to be a variable factor in determining the outcome of disputes in several regions.
The Deputy Minister of Finance further said that Thai exports have all along been a key engine driving the country's economy, representing around 55% of Thai GDP at present. Despite volatility in the global trade context, Thai exports in the first seven months of 2024 have expanded by 4%, surpassing expectations. Exports for the full year are anticipated to grow further, supported by the potential of global trade and economic growth, which will consistently fuel Thailand's economic development.
Dr. Rak Vorrakitpokatorn, President of EXIM Thailand, said that the collaboration between EXIM Thailand and MARSH PB focuses on building the knowledge base and confidence of Thai entrepreneurs and investors through the analytical perspective on the geopolitical situations and trends in conjunction with recommendations on financial strategies and tools to tackle the problems that have arisen. Particularly, EXIM Thailand's export and investment insurance facilities serve as practical tools for entrepreneurs to efficiently deal with geopolitical challenges in regions around the world. Both institutions will promote and support Thai entrepreneurs to ensure they are fully ready for business start-ups or expansion with confidence in the face of multiple challenges from the existing geopolitical tensions. Thai business sectors will be strengthened to thrive amid the current volatility and further drive Thai economic stability and sustainability.
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"This collaboration with MARSH PB is another mission of EXIM Thailand as a state-owned specialized financial institution under the supervision of the Ministry of Finance that has been steadfast in performing our role as a development bank by expanding our cooperation with alliances in bridging knowledge gap, opportunity gap and network gap for Thai entrepreneurs, coupled with financial tools including export and investment insurance facilities. We seek to see Thai entrepreneurs as strong economic warriors to stand firm with sustainable competitive edges in the trade and investment target markets that are abundant in number in several countries around the world," added Dr. Rak.