Brokerages in Southeast Asia are preparing for tough times ahead.
Liberalization of fees and technology are radically changing the
landscape for financial firms in the new millennium. In Thailand,
the number of broking houses has fallen by almost half over the
past three years as the Asian financial crisis took its toll. The
survivors are now facing pressure from eroding margins under a new
commission structure now being introduced.
In Malaysia, the government is mapping out a so-called master plan
to further consolidate the industry and brokerages fear possible
cuts in fees in line with the trend in other Southeast Asian
countries - although no official plans have been announced. And in
Singapore commission rates are being drastically reduced as part of
a programme by the local exchange to introduce freely negotiable
fees over four years. At the same time, the need to invest in
e-trading in an already highly-competitive market is putting
further pressure on profits....
