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Provident Fund Market in Thailand Jeremy Brahm, Punon Patsaman Siwaporn Wudanuphan & Harrison Huh
World Leader in Financial Services 4 P’s FSA Profile Firm Specific Advantage Integrated Technology Dominant in Home Market Wide Variety of  Clients
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],4 P’s FSA Profile 4 P’s of State Street
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Motivation Motivation to Enter into Thailand
Thailand Overview Thailand Overview Government Government: Democratic Capital: Bangkok Economy GDP per capita: $6,400 Savings interest rate: 2% Unemployment rate: 4.5% Geography Population: 61.2 million
SWOT SWOT Analysis ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
After What Graphs Before & Future Provident Fund Market ,[object Object],[object Object],[object Object],[object Object],[object Object],What are Provident Funds? Thai Pension Scheme
After What Graphs Before & Future Provident Fund Market ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Market Conditions
After What Graphs Before & Future Provident Fund Market Amount of Assets
After What Graphs Before & Future Provident Fund Market # of Employees & Employers
After What Graphs Before & Future Provident Fund Market # of Employees & Employers
After What Graphs Before & Future Provident Fund Market Short term (3 yrs) Growing Long term (5-10 yrs) Stable Growth ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Future Prospects
Chart Big 5 Share Minor Provident Fund Competition BIG FIVE Competitors
Chart Big 5 Share Minor Provident Fund Competition Competitors Thailand JV WOS
Chart Big 5 Share Minor Provident Fund Competition Competition Chart High Asset Average Per Fund Low Asset Average Per Fund High Average of Employees Per Fund Low Average of Employees Per Fund TFAM BFIT BANK OF AYUDHYA TISCO SCB MFC BANK THAI BBL AIA KTB NAM TMB BOA THAI LIFE SCB ASSET SCHRODER
Chart Big 5 Share Minor Provident Fund Competition Market Share
Chart Big 5 Share Minor Provident Fund Competition Market Share
Chart Big 5 Share Minor Provident Fund Competition Market Share
Overview Regulations &   Laws Players Key Government Players Revenue Department Ministry of Finance (MOF) Bank of Thailand (BOT) Commercial Registration  Department Ministry of Commerce (MOC) Securities Exchange of Thailand (SET) Securities and Exchange Commission (SEC) Royal Thai Government
Overview Regulations &   Laws Players Foreign Business Act B.E. 2542 Act on the Undertaking of Finance Business, Securities  Business and Credit Foncier Business B.E. 2522 Thai-U.S. Treaty of Amity and Economic Relations Provident Fund Act B.E. 2530 Laws Overview
Licenses Limits Procedures Licensing
Licenses Limits Procedures Registration:   Every fund must be registered Contribution:   Between 2% - 15% of wages Management:   Asset Management Companies Investment:   Employees’ Choice Redemption:   Over 55 years old and  At least 5 years participation Under Provident Fund Act B.E. 2530 Limits on Provident Funds
[object Object],[object Object],Future Trend Possible Changes in Regulations
WOS Entry Strategy JV Equity JV WOS Equity L / M H L / M H L None H L L M H L / M H L None L / M H L / M M L None M H L / M M / H H L Mode of Entry Amount of Investment ( $ )  Knowledge of Local Market Local Connection Investment Risk Transfer Risk Repatriation Brand Image Improvement Management Control Learning Cost
Scenario Strategy Mode Partners Recommendation ,[object Object],[object Object],[object Object],[object Object],To reduce investment cost To reduce investment risk To reduce learning time and cost Joint Venture
Scenario Strategy Mode Partners Recommendation Possible Partners Joint Venture High Asset Average Per Fund Low Asset Average Per Fund High Average of Employees Per Fund Low Average of Employees Per Fund TFAM BFIT BANK OF AYUDHYA TISCO SCB MFC BANK THAI BBL AIA KTB NAM TMB BOA THAI LIFE SCB ASSET SCHRODER
Scenario Strategy Partners Mode Recommendation Possible Partners ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Mode Strategy Scenario Partners Recommendation Scenario ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Scenario Mode Strategy Partners Recommendation Gain Market Share Product: Diversified  Investment  Policies Distribution: Using Partner’s  Distribution Channel Promotion: Multimedia Blitz Price: Competitive & Flexible Management Fee Strategy: Short-term
Scenario Mode Strategy Partners Recommendation Market Leader Product: Full Line of Diversified Investment Policies Distribution: To Utilize  Current Customers’ Network Promotion: Participating In Social Programs Price: Equal to Direct Competitors Average Management Fee Strategy: Long-term
NOW Conclusion for State Street. The Time to Enter the  Thai Provident Fund Market is
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State Street Presentation

  • 1. Provident Fund Market in Thailand Jeremy Brahm, Punon Patsaman Siwaporn Wudanuphan & Harrison Huh
  • 2. World Leader in Financial Services 4 P’s FSA Profile Firm Specific Advantage Integrated Technology Dominant in Home Market Wide Variety of Clients
  • 3.
  • 4.
  • 5. Thailand Overview Thailand Overview Government Government: Democratic Capital: Bangkok Economy GDP per capita: $6,400 Savings interest rate: 2% Unemployment rate: 4.5% Geography Population: 61.2 million
  • 6.
  • 7.
  • 8.
  • 9. After What Graphs Before & Future Provident Fund Market Amount of Assets
  • 10. After What Graphs Before & Future Provident Fund Market # of Employees & Employers
  • 11. After What Graphs Before & Future Provident Fund Market # of Employees & Employers
  • 12.
  • 13. Chart Big 5 Share Minor Provident Fund Competition BIG FIVE Competitors
  • 14. Chart Big 5 Share Minor Provident Fund Competition Competitors Thailand JV WOS
  • 15. Chart Big 5 Share Minor Provident Fund Competition Competition Chart High Asset Average Per Fund Low Asset Average Per Fund High Average of Employees Per Fund Low Average of Employees Per Fund TFAM BFIT BANK OF AYUDHYA TISCO SCB MFC BANK THAI BBL AIA KTB NAM TMB BOA THAI LIFE SCB ASSET SCHRODER
  • 16. Chart Big 5 Share Minor Provident Fund Competition Market Share
  • 17. Chart Big 5 Share Minor Provident Fund Competition Market Share
  • 18. Chart Big 5 Share Minor Provident Fund Competition Market Share
  • 19. Overview Regulations & Laws Players Key Government Players Revenue Department Ministry of Finance (MOF) Bank of Thailand (BOT) Commercial Registration Department Ministry of Commerce (MOC) Securities Exchange of Thailand (SET) Securities and Exchange Commission (SEC) Royal Thai Government
  • 20. Overview Regulations & Laws Players Foreign Business Act B.E. 2542 Act on the Undertaking of Finance Business, Securities Business and Credit Foncier Business B.E. 2522 Thai-U.S. Treaty of Amity and Economic Relations Provident Fund Act B.E. 2530 Laws Overview
  • 22. Licenses Limits Procedures Registration: Every fund must be registered Contribution: Between 2% - 15% of wages Management: Asset Management Companies Investment: Employees’ Choice Redemption: Over 55 years old and At least 5 years participation Under Provident Fund Act B.E. 2530 Limits on Provident Funds
  • 23.
  • 24. WOS Entry Strategy JV Equity JV WOS Equity L / M H L / M H L None H L L M H L / M H L None L / M H L / M M L None M H L / M M / H H L Mode of Entry Amount of Investment ( $ ) Knowledge of Local Market Local Connection Investment Risk Transfer Risk Repatriation Brand Image Improvement Management Control Learning Cost
  • 25.
  • 26. Scenario Strategy Mode Partners Recommendation Possible Partners Joint Venture High Asset Average Per Fund Low Asset Average Per Fund High Average of Employees Per Fund Low Average of Employees Per Fund TFAM BFIT BANK OF AYUDHYA TISCO SCB MFC BANK THAI BBL AIA KTB NAM TMB BOA THAI LIFE SCB ASSET SCHRODER
  • 27.
  • 28.
  • 29. Scenario Mode Strategy Partners Recommendation Gain Market Share Product: Diversified Investment Policies Distribution: Using Partner’s Distribution Channel Promotion: Multimedia Blitz Price: Competitive & Flexible Management Fee Strategy: Short-term
  • 30. Scenario Mode Strategy Partners Recommendation Market Leader Product: Full Line of Diversified Investment Policies Distribution: To Utilize Current Customers’ Network Promotion: Participating In Social Programs Price: Equal to Direct Competitors Average Management Fee Strategy: Long-term
  • 31. NOW Conclusion for State Street. The Time to Enter the Thai Provident Fund Market is