The SET To Reserve THB30 Million For Promotion Of Good Corporate Governance With Discounted Annual Fees On Offer Until Year-End 2004; EASTW Got 50% Of Its Fee Waived For 2 Consecutive Years After Receiving A "Good" CG Rating

The SET board extends the promotion period offering a 50% discount on listed companies' annual fees to two consecutive years for those participating in the Corporate Governance (CG) Rating Program and obtaining seven (out of ten) points or higher. Companies must be rated by 2004 to be eligible for this promotion. Over THB 30 million has been reserved for this purpose. With a "good" CG rating EASTW is the latest company in 2003 to get a 50% discount. Meanwhile BAFS got its rating reviewed and promoted to the "very good" level.

Ms. Patareeya Benjapolchai, the SET Executive Vice President, disclosed that the SET board of governors has approved the extension of the SET's support to the CG Rating program for another year after the current promotion ends on 31 December 2003. Companies which participate in the Program by 31 December 2004 and receive seven points or higher will receive a 50% annual fee discount for two consecutive years. They will also get more subsidies if the discount does not compensate the rating expenses occurred from their participation in the Thai Rating and Information Services' program.

The SET has been supporting listed companies' participation in the CG Rating program since 2002 by offering a discount to those getting seven points or higher on the scale of ten. The extension of the promotion period will provide an opportunity whilst giving an incentive to companies in the process of getting rated, hence promoting the standard of good corporate governance overall. The SET has already reserved THB30 million to serve this purpose.

Ms. Patareeya said that: "The SET would like to praise three companies that obtained "good to very good" ratings in 2003. They are Siam Industrial Credit Pcl. which obtained 7.17 points. Bangkok Aviation Fuel Services Pcl. whose rating has been raised to "very good" with improved points of 8.08, reflecting its efficient implementation of CG to improve its operation. The final one is Eastern Water Resources Development and Management Pcl. which, on 15 December, obtained 7.70 rating points which reflects its determination to develop and implement CG principles."

In 2002, there were three companies that joined the CG Rating program. They all obtained "good to very good" ratings with points higher than seven. These three consist of Bangkok Aviation Fuel Service Pcl. (7.39 points), Electricity Generating Pcl. (7.98 points) and Kasikornbank Pcl. (8.61 points).

"The SET would like to ask interested companies to join the CG Rating program since, besides getting the discount promotion from the SET, obtaining the rating from "good" level up will also boost the company's credibility from the views of its stakeholders such as shareholders, employees, customers, and local and foreign investors. This, in turn, will bestow added intangible value to their corporations," Ms. Patareeya said.