Marking 72 years of impactful presence in Thailand, Sumitomo Mitsui Banking Corporation (SMBC) celebrates its legacy as the first Japanese bank in the Thai market. In an exclusive interview, Mr. Akihiro Fukutome, President and CEO of SMBC, delves into the bank's strategies, vision, and future plans, highlighting SMBC's leading role in strengthening Japan-Thailand economic relations, supporting local and Japanese businesses, and driving sustainable growth in Thailand. From fostering investment opportunities to championing innovation, Mr. Fukutome sheds light on how SMBC is positioned to shape the future of banking in Thailand and the broader APAC region.
“Life doesn’t happen in the board room. Life happens on site. True insight into client needs and market dynamics can only be gained by being present, Understanding the realities on the ground, and directly engaging with our community." — Mr. Akihiro Fukutome, President and CEO of Sumitomo Mitsui Banking Corporation
OVER SEVEN DECADES OF TRUSTED HERITAGE IN THAILAND
Reflecting on SMBC's journey, Mr. Fukutome explained, "When SMBC first entered Thailand 72 years ago, it marked a significant milestone not only for SMBC but also for the longstanding relationship between Japan and Thailand." Diplomatic ties between the two nations date back to 1887, and with 2024 marking the 137th anniversary of this partnership, their connection has grown stronger over the years. Thailand is now home to the second-largest Japanese expatriate community in Asia, with approximately 72,000 Japanese nationals and nearly 5,800 Japanese companies established in the country. SMBC was the first Japanese bank to set up operations in Thailand, and since then, it has become a pivotal player in fostering economic growth and supporting Japanese investments.
EARLY ENTRY AND LONGSTANDING COMMITMENT TO THAILAND
Recalling SMBC's initial entry into Thailand in the early 1950s, Mr. Fukutome highlighted how Japan was already a key trade partner and investor for Thailand at that time. "Japanese companies, especially those in the automotive sector, were beginning to shift their operations to Thailand, establishing it as a manufacturing hub," he said. SMBC's presence was aligned with the bank's mission to support Japanese businesses globally by offering essential financial services to aid their operations. Over the years, SMBC has maintained its commitment to supporting the Thai economy, emphasising a consistent focus on customer needs and local development, despite evolving economic landscapes.
THAILAND'S PIVOTAL ROLE IN SMBC'S ASIA PACIFIC STRATEGY
According to Mr. Fukutome, SMBC's footprint has expanded across the Asia-Pacific region, helping Japanese businesses capitalise on emerging opportunities within ASEAN. With branches in Bangkok and Chon Buri, SMBC closely collaborates with both Japanese and Thai companies, aiding them in navigating Thailand's business environment. This unique connection remains one of SMBC's core business strengths. "Japan remains as one of Thailand's largest foreign investors, and SMBC's role in bridging Thai and Japanese markets has grown increasingly important," said Mr. Fukutome, underscoring Thailand's strategic position in SMBC's APAC operations.
GUIDING PRINCIPLES BEHIND SMBC'S CONTINUED PRESENCE
Discussing SMBC's journey in Thailand, Mr. Fukutome cited the bank's unwavering adherence to key principles. Following the Plaza Accord of 1985, a period marked by a sharp appreciation of the yen, many Japanese companies relocated their production bases to ASEAN, with Thailand emerging as a preferred destination. Japan is still one of Thailand's largest investors, particularly in automotive and electrical machinery, reflecting SMBC's enduring commitment to these sectors.
For SMBC, supporting clients' evolving needs and contributing to Thailand's economic development remain central tenets of its strategy. This is also well aligned to Mr. Fukutome's passionate advocacy for having the "Genchi-Genbutsu" (also known as "life happens on site") mindset, which he encourages his teams across the bank to actively embrace.
He explained, "True insight into client needs and market dynamics can only be gained by being present, understanding the realities on the ground, and directly engaging with our community." "By being present, listening, and observing directly, SMBC upholds a tradition of genuine support, positioning itself as a trusted partner to both local and regional communities in Thailand and ASEAN," said Mr. Fukutome.
THAILAND 4.0 AND BANKING SECTOR OPPORTUNITIES
Mr. Fukutome emphasised SMBC's alignment with the "Thailand 4.0" initiative, which aims to transform the nation's economy through advanced technology, innovation, and sustainability across industries. He shared, "Thailand 4.0 focuses on ten target industries, including next-generation automotive and robotics, which benefit from tax exemptions to encourage investment." With a strong digital presence and innovative solutions, such as trade finance powered by fintech partnerships, SMBC is well-positioned to support Thailand's shift toward a value-based economy and sustainable growth.
SUPPORTING INVESTMENT IN THE EEC
The Eastern Economic Corridor (EEC) is a cornerstone of the "Thailand 4.0" strategy, envisioned to position the eastern provinces as a technology and innovation hub. Recognising the EEC's importance for both Japanese and local investors, SMBC signed a memorandum of understanding with the EEC Office in 2022. This partnership enables SMBC to provide clients with essential information on incentives and developments within the EEC, thus enhancing the bank's support for Japanese companies investing in Thailand's evolving industrial landscape.
JAPANESE INVESTMENT SENTIMENT AND ASEAN PARTNERSHIPS
Thailand's robust supply chains, strong infrastructure, and industrial concentration have made it an attractive destination for Japanese investments. According to Japan's Ministry of Finance, Thailand was the second-largest recipient of Japanese investment in the manufacturing sector, trailing only China. With ASEAN integration advancing, Mr. Fukutome anticipates heightened collaboration between Japanese and Thai companies. SMBC's strategy aligns with fostering such cross-border partnerships, facilitating further growth and economic synergy within the region.
EMBRACING EMERGING TRENDS IN SUSTAINABILITY
Mr. Fukutome also highlighted SMBC's commitment to sustainability, rooted in a history of more than 400 years. SMBC offers an array of sustainable finance products, including green deposits and sustainability-linked trade finance. In 2023, SMBC executed Thailand's first sustainability-linked trade finance transactions and earned recognition, including the Asset Triple A Sustainable Capital Market Awards, for its ESG solutions. By embracing sustainability and supporting its clients closely on their transition journey, SMBC aims to solidify its role as a leader in sustainable finance within Thailand and across the APAC region.
FOCUS FOR 2024 AND BEYOND
As SMBC moves into 2024, Mr. Fukutome acknowledges global uncertainties that pose challenges for businesses and economies alike. In response, SMBC will continue to be agile and help clients navigate complex environments while supporting long-term sustainability efforts. Thailand's thriving automotive and electronics sectors and the country's commitment to sustainability present ample growth opportunities.
In an increasingly competitive banking sector, SMBC distinguishes itself through a blend of global reach and local insight. Mr. Fukutome explained, "Our global network enables us to access international capital and stay attuned to market trends, while our deep-rooted presence in Thailand allows us to offer solutions that are both culturally and commercially relevant." SMBC is well-positioned to address the evolving needs of our clients in Thailand by combining global expertise with a deep understanding of local dynamics and prioritising long-term value creation.
GIVING BACK TO THE COMMUNITY THAT BUILT US
We are honoured by the Thai society for their 72 years of unwavering support and committed to giving back. Since 1962, the SMBC Scholarship Program has supported nearly 4,000 Thai university students. SMBC has also contributed to humanitarian initiatives, including flood relief and COVID-19 aid. Since 2022, SMBC's commitment to community engagement is reflected in the active participation of its employees in initiatives such as providing clean water facilities for future generations, donating solar lights to children in energy-impoverished areas, cleaning our local beaches, supporting local schools with donations and hands-on enhancements and recycling PET bottles at work. These efforts have not only made a difference in our local community but also reinforced SMBC's values and commitment to contributing to a better tomorrow.
A PROMISING FUTURE FOR SMBC IN THAILAND
Entering a new chapter in Thailand, Mr. Fukutome envisions a future brimming with opportunity. Rooted in innovation, sustainability, and community, SMBC aims to uphold its legacy as a trusted financial partner in Thailand. As Japan and Thailand continue strengthening their economic ties, SMBC is honoured to play a part in supporting growth, resilience, and prosperity in the years ahead.