Policy, Structure and Strategies for Sustainability Development


Sustainability Policy and Goals

The business philosophy of the founders, Mr.Chuchat Petaumpai and Mrs Daonapa Petampai, is to be a microfinance service provider that helps people with limited access to the loan from financial institutions to be able to access emergency funding with fair and transparent financial costs. The said philosophy has become a guideline for business operations based on the principles of good governance and appropriate risk management over the past years. However, after having been listed on the Stock Exchange of Thailand, the Company’s performance has leapt dramatically from the strategy to expand the number of branches to maximize the coverage and getting closer to the people. As a result, in just 5 years, the Company’s credit portfolio has grown by more than 800 per cent. The number of customers has increased from 0.62 million contracts to 2.9 million contracts and the number of employees has grown from 1,703 people to 9,576 people. The Company is well aware that the impact of the Company’s operations on its stakeholders has increased significantly.

In terms of economy, society and environment, the Company currently emphasises sustainable development to be a “responsible microfinance” by operating under the principles of good corporate governance and consider the impact on all stakeholders. Following the policy of the Bank of Thailand, the Company has considered the value chain to set the goals, policies and framework as follows:

Sustainable Development Structure

Committees and working teams who manage issues include:

Board of Directors / Corporate Governance Committee

Board of Directors and the Corporate Governance Committee jointly determine, review, and approve sustainability goals and policies in all 3 areas, guidance, operational guidelines including listening to opinions from stakeholders to prepare for sustainable development issues (materiality). The teams also set the framework for risk management and Megaforce risks, define the structure and set a responsible team including monitoring supervision work.

President and the Working Group of the Sustainable Development Work

The Deputy Managing Director of the Company has appointed a working group on sustainable development which consists of representatives from various departments such as representatives of Human resources, Investor Relations Department, Company Secretary Department, Marketing and Customer Relations (Administration), Purchasing, Finance and Information Technology Department. This working group is responsible for creating strategies to work accordingly with the goals and policies set by the board, plan the direction, implement the plan by using performance indicators, tools and guidelines to help with operations, including monitoring the operations and report to the Corporate Governance Committee and the Board of Directors.

Company Value Chain and Stakeholder Engagements

Muangthai Capital Public Company Limited is a non-bank financial institution providing mainly vehicle title loan under a personal loan license with the supervision of the Bank of Thailand to primarily retail customers. The Company focus on growth by diversifying customer reach through the Company’s branches. By the end of 2019, the Company has a network of 4,107 branches nationwide. Nonetheless, the customer group has a habit of repeatedly applying for credit which is reflected in the Company’s circular value chain.

In this regard, the value chain management adhere to the guidelines for good corporate governance which consists of having good corporate governance and risk management that is sufficient, appropriate and effective. As a result, the Company will be able to create sustainable development.

Stakeholder Engagements

To determine stakeholders, the Company considered the value chain that consists of basic activities; such as loan origination, customer management and debt collection; and supporting activities such as branch expansion, Know-Your-Customer (KYC), interest rate and LTV setting, market conduct practising, customer monitoring, an increase of customer retention, asset auction. The Company has set guidelines for treating all stakeholders in the CG Handbook and Business Code of Conduct disclosed on the Company’s website in the investor relations section http://investor.muangthaicap.com

Stakeholder Materiality SD Strategy SD Tool
Customer Responsibility to Customer
  • Financial Inclusion Development
  • Industry Ethical Conduct Development
Employee Workforce Management
  • Human Right and Diversity
  • Human Development Programmes and Learning Culture
  • Security and Healthcare
  • Life quality, Compensation and Welfare Programs
  • Proper, Fair and Transparent Communication Channels and Employee Assessment Programmes
  • Succession Plan
Supplier and Business Partner Supply Chain Management
  • Supply chain management with consideration to the impact on ESG
Shareholder/ Investor/ Creditor Corporate Governance
  • Corporate Governance in Management Structure
  • Risk Management
Competitor Participation for Industrial Market Conduct Development
  • Establishment of a trade association for vehicle title loans industry and jointly discuss common industry development practices
Community and Social Community and Social Development
  • Economic Pillar Through CSR-in process programmes to cultivate financial knowledge and discipline in customers, employees and general public.
  • Social Pillar Through CSR-afte process programmes to create a bond between the company and communities by providing educational opportunities, public health and maintain the inheritance of good cultural traditions
  • Environment Pillar Environmental Management
CSR & Corporate Citizenship

Sustainability Materiality and SDGs Goals

In 2019, the Corporate Governance Committee together with the management team and working group for sustainable development who consists of representatives from various business units jointly assess, compile, and prioritise important issues to the business operations of the Company by considering the participation of all stakeholders, such as shareholders and creditors, customers, personnel, competitors, partners, communities and the environment. This covers issues that the industry and regulatory agencies pay attention to that lead to the goals of the United Nations (UN’s SDGs) to prioritise and find a way or strategy for operations in response to the Company’s sustainability goals appropriately.

Therefore, this year, the important sustainability issues of the Company are the 8 key issues that have been improved from the Sustainability Report 2018, with the following details:

Identification and Prioritization of the Key Business Materiality

Report of Issues and Improved Issues for Sustainable Development

In 2019, the Corporate Governance Committee together with the management team and the working group for sustainable development jointly assess to improve policies and strategies in detail with key points maintained. Such improvements result in a clear policy formulation and ways to work more which can show the details of the improvements as follows:

Pillar Materiality Scope and Boundary in 2018 Scope and Boundary in 2019
G Responsibility to Customer
  • Financial Product Development for Customer’s Need
  • Customer Satisfaction
  • Customer Right
  • Financial Inclusion Development
    • Financial Product Development with Responsibility
    • Branch Expansion Strategy
    • Service Excellency
    • Customer’s Financial Discipline Cultivation
  • Industrial Ethical Conduct Development
    • Respect to Customer’s Satisfaction, Right and Data Privacy
    • Development of Industrial Market Conduct
    • Being a role model organisation in the area of corporate governance
Risk Management
  • Regulatory and Accounting Standard Risk Management
  • Regulatory and Accounting Standard Risk Management
  • IT Security and Cyber Security Risk Management
  • Financial Liquidity Risk Management
  • Fraud Risk Management
Corporate Governance
  • Corporate Governance
  • Anti-Corruption
Innovation -Not Available-
  • Innovation for Risk Management
  • Innovation for Customer Experience Improvement
S Workforce Management
  • Human Right & Diversity
  • Human Development Programmes
  • Security and Healthcare
  • Human Right & Diversity
  • Human Development Programmes
  • Security and Healthcare
  • Compensation & Welfare Programmes
  • Communication Channels
  • Succession Plan
Community and Social Development
  • CSR Programmes
  • CSR Programmes
E Environmental Management
  • Carbon Footprint Reduction
  • Efficient Energy Consumption
  • Carbon Footprint Reduction
  • Efficient Energy Consumption
Supply Chain Management
  • Green Purchasing
  • Green Purchasing
  • Transparent Purchasing and Consider ESG Impacts

As a result of the initial sustainability review, the Company still adheres to the Sustainable Development Goals (SDGs) goals in accordance with the United Nations goals, 9 out of 17 goals: 1. No Poverty, 3. Good Health and Well Being, 4. Quality Education, 5. Gender Equality, 8. Decent Work and Economic Growth, 9. Industry, Innovation and Infrastructure, 10. Reduced Inequality, 11. Sustainable Cities and Communities, 12. Responsible Consumption and Production.

To improve the business policy, the Company focuses on creating shared value (CSV) by generating and developing microfinance loan products to respond to the financial inequality of the people with responsibility to be main Corporate Social Responsibility (CSR) and Corporate Citizenship to build sustainable value for the stakeholders with a framework to exceed sustainable development in 3 dimensions: economic, social and environmental as follows:

Responsible Microfinance
Pillar Governance



Tool CSV


Corporate Citizenship

Goal To Reduce Financial Inequality

To Build Strong Communities

To Build Strong Communities


Responsibility to Customer

1) Financial Inclusion Development

  • Microfinance product development to enable accessibility to unbanked customers to have proper cost of fund and transparency with responsibility
  • Branch expansion to be sufficient and appropriate for access to public loans
  • Service excellency for customers thoroughly and equally
  • Cultivation of financial knowledge and discipline to customers

2) Industrial Ethical Conduct Development

  • Respect to customer’s satisfaction, right and data privacy
  • Participation in development of industrial market conduct to be fair and transparent to customers
  • Being a role model organisation in the area of corporate governance

Risk Management

Corporate Governance

Workforce Management

  • Human right and Diversity
  • Human development programme and Building a learning culture
  • Security and Healthcare Policy
  • Life quality and Long-term incentive plan in regard to company’s performance
  • Communication channel development and proper, fair and transparent performance assessment programme
  • Succession plan

Community and Social Development with CSR Programmes

  • Supporting child development of children in the communities with “Baan Mai Khong Noo” Project .
  • Being part of community’s emergency healthcare programme with “Muangthai Blood Donation” Program incorporation with Thai Red Cross
  • Behaving as a good community’s citizen by inheriting traditions, culture and religion with members of the community with Kathina Hosting Ceremony

Environmental Management

1) Carbon Footprint Reduction

  • Waste Management with Recycle Process
  • Paper usage reduction with Information Technology Development

2) Efficient Energy Consumption

  • Investment in Head Quarter Office which will increase the efficiency of energy consumption and being community and environmental friendly
  • Turn-off for a Change Programme

Supply Chain Management

  1. Green product purchasing policy
  2. Transparent purchasing policy that consider the impact to ESG