The value of corporate bonds issued this year will likely be about 50 per cent of the 2009 level, due to higher interest rates and massive government-bond issuance, according to the Thai Bond Market Association.

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Govt-bond issuance to squeeze corporate debt this year

Infrastructure services, if quickly improved, could promote a better investment climate in Thailand

A steep fall in exports caused by the global trade slump drove down industrial production and investment in the first half of 2009. Business and consumer sentiment was further undermined by political tensions. Although there were signs the worst had passed by midyear, the economy is expected to contract by more than was projected in March. Modest growth is seen resuming in 2010. The tempo of recovery will depend in large part on the Government fully implementing two fiscal packages, including a new public investment program.

Regulations and bureaucratic procedures that firms have reported as severely affecting their businesses and investment decisions were mainly on delays in tax refunds, uncertainties around the time taken to clear customs or obtain permits and certifications, and uncertainties around regulatory policies. The delays in tax refunds referred to both value-added tax refunds and import tax refunds for exporters. The Revenue Department and Customs Department have been introducing programs and employed internet-based services to reduce the time taken to do so.

Demand from businesses have increased rapidly over the years in Thailand

Infrastructure plays a crucial role in economic development and enrichment of living standards. Various stages of economic development require different levels of infrastructure upgrades or enhancements to ensure infrastructure in fact facilitates economic activities. Thailand has been facing a series of infrastructure challenges, both new and well-established. To name a few: there is a need for infrastructure services to catch up with economic development and international competition, manage the growth in urban areas, respond to global energy prices, and ensure basic services for the poor.

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