Sign up | Log in



Home  >>   Daily News  >>   Thailand News  >>   Economy  >>   Corruption plagues corporate Thailand
NEWS UPDATES Asean Affairs        11  May 2011

Corruption plagues corporate Thailand

Related Stories

May 3, 2011
Thai inflation spikes in April

April 21, 2011
Thai interest rate raised

April 19, 2011
Thai rates look firm

April 12, 2011
Thai central bank reviews policies

April 11,2011
Subsidy issues plague Thailand

April 8, 2011
Disasters hit Thai SMEs

April 6, 2011
Thailand gains from improved trends

Lax law enforcement has resulted in various forms of corruption among local and international companies and subsidiaries to artificially boost share prices and evade taxes, resulting in severe damage to the economic system, say experts.

Deunden Nikomborirak, a researcher with the Thailand Development Research Institute (TDRI), said the most prevalent practices involved parent companies siphoning resources to subsidiaries; accounting frauds to boost share prices or evade tax; and insider trading.

The Securities and Exchange Commission should increase penalties under the law as the existing fines of 500,000 to 1 million baht were too low compared with the damages done to shareholders. Therefore, fines should be a multiple of the damages incurred, said Dr Deunden, who conducted research into the issue jointly with the Office of National Anti-Corruption Commission.

"The SEC and the SET took legal action against corrupt companies but the damages have already been done to retail investors," Dr Deunden said.

SEC officials should be allowed to investigate the cases and send information to prosecutors as they have a relatively better grasp of corporate finances and accounting than the police, she said.

Dr. Deunden added that policymakers should promote understanding and disclosure by listed firms. Change should come from the bottom up rather than top-down as politics and business interests would be key hindrances.

"Investors should be increasingly careful during the pre-election period, as share manipulation by politicians is likely to occur," she added.

Tax evasion, she said, also came in various forms. Multinational and local companies may transfer profits to tax havens and nominees or understate import values. The use of arm's length prices to assess multinationals' corporate taxes has no legally binding effect and details of calculating costs are lacking.

Kittipong Urapeepatanapong, a partner with Baker & McKenzie, added that long statutory limits resulted in slow prosecution of corruption and, in some cases, failures to bring cases at all. "The government might consider stipulating firms that secure state contracts to declare their profits to mitigate tax evasion," he said.

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
  Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below




1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Today's  Stories    11  May 2011 Subsribe Now !
  • Rat meat trade aids Cambodian farmers Subcribe: Asean Affairs Global Magazine
• Indonesian drought arrives in 2012 Asean Affairs Premium
• Indonesian mining law overhauled
Research Reports
on Thailand 2007-2008

•Textiles and Garments Industry

•Coffee industry

•Leather and footwear industry

•Shrimp industry

• Mekong dam put on hold
• Maybank sees loan growth

• Philippines manufacturing drops

• Corruption plagues corporate Thailand

• Thai telecom plan criticized p

Asean Analysis    11  May 2011

Advertise Your Brand
• What next on the Mekong? Sponsor Our Events

Asean Stock Watch    11  May 2011

• Asean Stock Watch-May 11 p

Global News Impacting Asia    17 November 2010


• Bank of America sees Asian inflation


• Lloyd’s increases insurance push in Malaysia


• Wells Fargo analyst on euro


• Obama’s visit to Asia


ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent

• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore
• Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline
• Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More


Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

| Terms of Use | Site Map | Privacy Policy  | DISCLAIMER |

Version 5.0
Copyright © 2006-2020 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand