Thitikorn Plc, Thailand’s largest motorcycle lender, plans to inject $1.5 million into Suosdey Finance, its Cambodia subsidiary, to increase its share of the local leasing market.
As reported in the Bangkok Post yesterday, Thitikorn approved plans to increase its registered capital in Cambodian by $1.5 million in an effort to balance local and foreign revenue.
The plan will be implemented as soon as the National Bank of Cambodia approves the company’s request to open three more branches in the Kingdom, which will bring the total number of offices in Cambodia to nine, according to Prathama Phornprapha, Thitikorn’s managing director.
Hout Ieng Tong, president and CEO of Hattha Kaksekar Limited, one of the largest microfinance institutions in Cambodia, said the leasing business has been growing exponentially in recent years, with more and more people attracted to leasing services to own vehicles due to generally lax requirements.
“I think Thitikorn’s investment represents a positive sign for the development of the financial sector in Cambodia because it will increase people’s access to finance,” he said.
“The sector still has a lot of room for growth because most leasing companies are located in urban centres.”
According to the Bangkok Post, Thitikorn’s revenue in Cambodia and Laos increased dramatically in 2017, growing from 396.7 million bath ($12.4 million) to 524.1 million baht ($16.4 million).
The subsidiaries in Cambodia and Laos generated 35 million baht ($1 million) in profits, Ms Prathama said, adding that Cambodia has the highest growth ratio for motorcycle hire purchase in the region.
“To meet the company’s 2020 revenue vision, Thitikorn will have to expand to other countries beyond Cambodia and Laos,” she said.