Thai listed companies have cemented their position as regional leaders in corporate governance and sustainability, sweeping a significant number of awards at the 2024 ASEAN Corporate Governance Scorecard (ACGS). With Thailand securing the highest number of accolades in the ASEAN Asset Class category and achieving the top average score across the region, the results underscore the country’s growing commitment to transparency and sustainable business practices.
Unprecedented Success in Regional Rankings
Thailand clinched 74 out of 250 spots in the ASEAN Asset Class category, awarded to companies scoring above 97.5 points under the ACGS framework which considers the following:
- Shareholders’ rights
- Equal treatment of shareholders
- Considering the role of stakeholders
- Disclosure and Transparency
- Responsibilities of the Board
Thailand also posted the highest average score in ASEAN at 103.83 points, a marked improvement over previous years. This biennial assessment, organized by Malaysia’s Minority Shareholders Watch Group with backing from the ASEAN Capital Markets Forum and the Asian Development Bank, evaluates the top 100 listed companies by market capitalization across six ASEAN nations—Thailand, Malaysia, Singapore, Indonesia, Vietnam, and the Philippines. 
The 2024 rankings, based on updated 2023 criteria aligned with the G20/OECD Principles of Corporate Governance, recognized Thai firms across all three award categories. In the ASEAN Top 50 Publicly Listed Companies (PLCs), 16 Thai companies earned a place among the region’s elite. Additionally, in the Country Top 5 for Thailand, prominent firms such as PTT, PTTEP, PTTGC, SCGP, and Thai Oil were celebrated for their exemplary performance.
This achievement highlights Thailand’s sustained efforts to elevate corporate standards, positioning its companies as benchmarks for governance and sustainability in Southeast Asia. The results also reflect a broader trend of Thai businesses integrating international best practices into their operations, a move that has bolstered investor confidence and regional competitiveness.
Regulatory Push Behind the Triumph
A key driver of Thailand’s success lies in the proactive role of its regulatory bodies, particularly the Securities and Exchange Commission (SEC). Pornanong Budsaratragoon, SEC Secretary-General, attributed the strong performance to recent regulatory enhancements, including revisions to the 56-1 One Report—a mandatory disclosure framework for listed companies—and alignment with international environmental, social, and governance (ESG) standards.
“We are delighted Thai listed companies continue to make significant progress,” said Mrs. Pornanong on the sidelines of the awards announcement. “Thailand has the highest number of recognized companies in the ASEAN Asset Class and the highest average score in the region, reflecting a strong commitment to sustainable business value.”
The SEC’s focus on transparency and sustainability has been instrumental in guiding companies toward global benchmarks. Mrs. Pornanong emphasized that the commission plans to further refine disclosure regulations to align with international sustainability reporting standards, such as IFRS S1 and S2, developed by the International Sustainability Standards Board. These standards aim to provide a consistent framework for companies to report on sustainability risks and opportunities, ensuring Thailand maintains its competitive edge on the global stage.
Embracing Global ESG Frameworks
Beyond regulatory support, Thai companies have increasingly adopted global frameworks to strengthen their ESG reporting and stakeholder engagement. Kulvech Janvatanavit, Chief Executive of the Thai Institute of Directors, noted that many firms are integrating guidelines from the Global Reporting Initiative (GRI) and the Task Force on Climate-Related Financial Disclosures (TCFD). These frameworks help companies address critical issues such as climate risk and long-term value creation, aligning their strategies with investor expectations and societal needs.
“Thai companies are making notable progress in ESG reporting, stakeholder engagement, and the integration of risk management practices,” Mr. Kulvech stated. He highlighted that this shift toward global standards is not merely a compliance exercise but a strategic move to build resilience and foster trust among stakeholders.
For instance, companies like PTT and Thai Oil have been lauded for their comprehensive sustainability reports, which detail efforts to reduce carbon emissions and invest in renewable energy. Such initiatives resonate with the growing demand from international investors for businesses to prioritize environmental stewardship alongside profitability.
Broader Implications for ASEAN and Thailand’s Economy
Thailand’s dominance in the ACGS rankings carries significant implications for the broader ASEAN region. As Southeast Asia seeks to attract foreign investment and strengthen its capital markets, robust corporate governance serves as a critical differentiator. Thai companies’ success signals to global investors that the region is home to businesses capable of meeting stringent international standards, potentially driving capital inflows and fostering economic integration.
Within Thailand, the awards reflect a maturing corporate landscape that balances profitability with social and environmental responsibilities. This balance is particularly crucial as the country navigates economic challenges, including fluctuating global demand and the transition to a low-carbon economy. By prioritizing sustainability, Thai firms are not only enhancing their reputations but also mitigating risks associated with regulatory changes and climate impacts.
Moreover, the recognition of 74 Thai companies in the ASEAN Asset Class category underscores the depth of governance practices across various sectors, from energy giants like PTT to packaging leaders like SCGP. This diversity suggests that Thailand’s commitment to corporate excellence is not confined to a few flagship firms but is becoming a widespread norm among listed entities.
Challenges and Future Directions
Despite the accolades, challenges remain. Aligning with international ESG standards requires substantial resources, particularly for smaller listed companies that may lack the capacity to implement comprehensive reporting systems. Additionally, as global frameworks evolve, Thai firms must remain agile to adapt to new requirements, such as emerging standards on biodiversity and social impact metrics.
The SEC and industry bodies like the Thai Institute of Directors are aware of these hurdles and are working to provide support through training programs and policy incentives. The goal is to ensure that the momentum gained in 2024 is sustained, positioning Thailand as a leader not only in ASEAN but also among emerging markets globally.
Another area of focus is stakeholder engagement. While Thai companies have made strides in reporting, there is room to deepen dialogue with communities, employees, and investors. Transparent communication about ESG goals and challenges can further enhance trust and accountability, reinforcing Thailand’s reputation as a hub for responsible business practices.
A Model for Regional Peers
Thailand’s performance in the 2024 ACGS offers valuable lessons for other ASEAN nations. By prioritizing regulatory alignment, capacity building, and adoption of global standards, countries across the region can elevate their corporate governance frameworks. Collaborative initiatives, such as those supported by the ASEAN Capital Markets Forum, could play a pivotal role in harmonizing standards and sharing best practices.
For Thailand, the awards are a testament to years of concerted effort by regulators, companies, and industry advocates. As Mrs. Pornanong and Mr. Kulvech both emphasized, the journey toward sustainable value creation is ongoing. The SEC’s commitment to refining disclosure norms and companies’ willingness to embrace ESG principles suggest that Thailand is well-positioned to maintain its leadership in the region.
As the ASEAN region continues to grow as a global economic powerhouse, the spotlight on corporate governance will only intensify. For Thai companies, the 2024 ACGS awards are not just a moment of celebration but a call to build on their achievements, ensuring that sustainability and transparency remain at the heart of their operations.
