The firm is also eyeing a role in the financing of the government's mega-projects but does not expect them to get off of the ground soon.

Kenjiro Noda, the firm's deputy president, said Daiwa was eager to participate in the financing of the government's mega-projects. But he said Thai executives recognised the mega-projects will be delayed. "We are not optimistic about them as well. If the projects can get started, it will help boost the economy and we'll be happy to help raise funds."

The company formally returned to Thailand last Friday after retreating more than a decade ago, when the Japanese economy became entangled in a deflationary cycle.

But with the Japanese economy showing signs of a sustainable recovery, Daiwa is taking its business overseas again. It opened an office in Bombay in February.

With the cooperation of Sumitomo Bank, Daiwa will provide investment-banking services for Japanese firms here. Daiwa is confident Thailand will remain a magnet for Japanese investment.

Atsuo Kuroda, the outgoing president of the Thai office of the Japan External Trade Organisation, said recently that China and Thailand would remain strategic destinations for Japanese direct investment, with China as a production base for the mainland market and Thailand as a production centre for exports.

Last month, Mizuho Bank tied up with Tisco Bank to generate more financial business for Japanese firms in the Kingdom. Daiwa is offering to act as an adviser on mergers and acquisitions and debt financing.

It will also offer operational assistance to Japanese firms here.

Chief representative Sung Ho Kang said Daiwa might seek a partner and expand to retail customers.

Piyarat Setthasiriphaiboon

The Nation