"Thailand is a clear leader in corporate governance among Asian economies and emerging economies. To maintain that leadership, Thailand must ensure the effectiveness of the Thai Securities and Exchange Commission (SEC) and Bank of Thailand (BOT) and address raising the level of corporate governance for state owned enterprises" said David Robinett, Senior Private Sector Development Specialist, World Bank.
Released today in Bangkok, the report "Observance of Standards and Codes" confirms Thailand as a regional leader in corporate governance with a relatively comprehensive framework and has achieved high levels of compliance in a number of key areas. Thailand obtained a score of 82.83 points from a possible total of 100, receiving the highest score in the disclosure and transparency areas.
The report notes that corporate governance reforms implemented in Thailand have enhanced investor trust and protected investors' rights, especially non-majority shareholders, increased board professionalism and promoted high levels of corporate transparency.
However the framework could be further improved with the adoption of the following key recommendations:
- Improving State Owned Enterprises (SOE) governance and making the state a more effective owner
- Protecting the independence and effectiveness of the Thai Securities and Exchange Commission (SEC) and Bank of Thailand (BOT)
- Making rules and regulations clearer for market participants
- Improving shareholder redress, including through SEC enforcement
- Finalising convergence to International Financial Reporting Standards (IFRSs) and enhancing beneficial ownership disclosure and other non-financial disclosure
- Strengthening auditor independence and effectiveness of market intermediaries
- Continuing to increase board independence and effectiveness
