Thailand and Hong Kong Join Forces to Create ASEAN Financial Hub

snoop1130 · October 22

Thailand has taken another significant step towards solidifying its position as a formidable player in the global financial sector. The country is actively pursuing a partnership with Hong Kong to establish a financial hub intended to connect ASEAN markets. This announcement came from Deputy Finance Minister Paopoom Rojanasakul following a meeting with Hong Kong’s Financial Secretary, Paul Chan, during the recent APEC Finance Ministers’ Meeting in Lima, Peru.

This collaboration marks a strategic priority for Thailand’s current government, aiming to leverage its geographic prominence as a gateway to ASEAN markets, especially in rapidly growing economies like Cambodia, Laos, Myanmar, and Vietnam. The initiative promises mutual advantages, enhancing the connectivity between Hong Kong, ASEAN, and China through the fluid exchange of trade and investment.

To bolster this ambitious vision, Thailand plans to reform its financial regulations, focusing on flexibility and transparency to attract investment. These reforms will introduce incentives such as tax benefits, furthering the development of a modern financial ecosystem. Paopoom highlighted the continued success of cross-border payment systems, such as the integration of Thailand’s PromptPay and Hong Kong’s Faster Payment System, underscoring the already solid cooperative relationship.

The meeting concluded with both sides expressing optimism about future financial collaboration as they exchanged ideas on expanding their economic and financial ties. With Hong Kong as Thailand’s 13th-largest trading partner, their trade relations have seen a substantial increase, with an overall two-way trade of US$13.7 billion in 2023. The formation of a financial hub marks yet another pivotal step towards fostering economic stability and innovation within the ASEAN and APEC regions.

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-- 2024-10-22