Thai co’s have good corporate governance

This isn’t much a surprise for us to hear, a public company here in Thailand has to deal with an extremely strict (albeit archaic) SEC and I’ve heard on on the odd occassion from CEO’s “The SEC wants us to disclose everything, our competitors will know too much about us!” But this is great for us as investors, and if you think about it when was the last time you heard about a huge corporate scandal here in Thailand for a public company? In the US, England, Singapore even (all the┬áchinese co’s listed there) you’d hear about corporate scandals annually, but here the only one I can think off the top my head is the auto-car import company where the CEO disappeared overseas with some of the company’s cash. Other than that Thailand can, in my opinion, be considered a “safe” market to invest in.

According to the CG Watch 2012 report by the Asian Corporate Governance Association and CLSA Asia-Pacific Markets, Thailand beat Japan and Malaysia, which tied for fourth, while first and second went to Singapore and Hong Kong, respectively.

The Thai capital market has shown the biggest improvement in the region in most aspects except for corruption in the public sector, a clear obstacle to the country’s development.

Source: Bangkok Post

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