THAIS PUT THEIR CREDIT CARDS TO WORK.

Thai consumers are rapidly gaining maturity in the use of credit cards and feel increasingly confident to venture into financed high-end purchases. Thailands credit card business is one of the nations most dynamic growth sectors, with sales growth of over 30 percent per annum since 2001. Double-digit growth in the value of credit card purchases should prevail through the remainder of 2004.

At the outset of this year, there were approximately 4.2 million credit cards in circulation in Thailand. Of those, about 70 percent were issued by Thai financial institutions. Factors that will nudge Thai consumers toward increasing credit spending this year include aggressive promotion of cards by issuing companies, lower interest rates, and rising consumer confidence.

Krungthai Card PCL, anticipates that its credit card customer base will increase 33 percent during 2004, in spite of increasingly intense competition among issuing companies. Competition will lead Thais to demand improved card-member services this year.